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POLITICS

Spain’s PM to visit China amid EU trade standoff

Spanish Prime Minister Pedro Sánchez will visit China in September, his office said Friday, as Beijing and the European Union are locked in a trade standoff over Chinese subsidies for electric vehicles.

Spain's PM to visit China amid EU trade standoff
Spain's Prime Minister Pedro Sánchez (L) shaking hands with Chinese President Xi Jinping (R) during a visit to Beijing in 2023. (Photo by Borja Puig de la Bellacasa / LA MONCLOA / AFP)

Sánchez’s office did not provide details for the visit, which will run between September 7th and 12th, but he is expected to meet Chinese President Xi Jinping and other officials during his trip.

The Spanish premier met with Xi during his last visit to China in March 2023, and took part in the Boao Forum for Asia — similar to the World Economic Forum held in Davos — in China’s Hainan province.

That visit came as Xi was trying to galvanise support for China’s peace proposal for Ukraine, and Spain — the eurozone’s fourth largest economy — was preparing to hold the rotating presidency of the European Union during the second half of 2023.

Sánchez’s upcoming visit to China comes after the European Commission, which oversees the bloc’s trade policy, announced last week that it planned to impose five-year import duties of up to 36 percent on electric vehicles imported from China.

The duties are to counter what it says are unfair subsidies.

Beijing responded by launching a probe into EU subsidies of some dairy products imported into China.

That investigation will cover a range of items including fresh cheese and curd, some milk and cream.

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ECONOMY

Bid for Spain’s train maker Talgo dropped amid fears of Russian ties

Hungarian consortium Ganz Mavag said Friday it has dropped its takeover offer for Spanish train manufacturer Talgo after Madrid vetoed the operation, arguing it posed risks for Spain's national security.

Bid for Spain's train maker Talgo dropped amid fears of Russian ties

“Given the serious damage that the Spanish government’s decision represents for the legitimate interests” of the consortium, as well as “uncertainty” regarding “the terms of the offer and the costs of maintaining its validity”, Ganz Mavag decided to abandon the bid, the group said in a statement sent to Spanish stock market regulator CNMV.

Spain’s leftist government said Tuesday it had vetoed the takeover offer made in March, which valued Talgo at 619 million euros ($690 million) “for reasons linked to protecting the strategic interests and national security of Spain.”

“Talgo is a strategic enterprise in a sector key to Spain’s economic security, territorial cohesion and industrial development,” the government added in a statement.

The government did not say so specifically in its statement, but it has made clear it is concerned about close links between Hungarian companies and the country’s nationalist Prime Minister Viktor Orban, who is considered an ally of Russian President Vladimir Putin.

El País newspaper reported Wednesday that Spanish intelligence services had produced a report raising the alarm about the consortium’s links with Orban’s government, and with Transmashholding, Russia’s largest manufacturer of trains and rail equipment.

Founded in 1942, Talgo is the main supplier of trains to Spanish state railway company Renfe, including Spain’s high-speed AVE trains, and as a result has access to key information about the country’s railway network.

Ganz Mavag, which groups Magyar Vagon and Hungarian state investment fund Corvinus Zrt, said its takeover bid for 100 percent of Talgo’s capital complied “with all the legal requirements in force”, so “there are no well-founded reasons for the Spanish government’s opposition.”

It said it would take legal action in Spain and the European Union to seek compensation over the blocked bid.

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