Trump Threatened to Cut Off Spain — Its PM Flew Straight to Beijing and Signed Deals With Xi Jinping

Six weeks after Donald Trump threatened to sever all trade with Spain, Prime Minister Pedro Sanchez landed in Beijing and signed cooperation agreements with President Xi Jinping, in what analysts are calling a direct and deliberate pivot away from Washington.

Sanchez arrived in China on 11 April 2026 for a four-day official visit, his fourth trip to Beijing in as many years, meeting Xi at the Diaoyutai State Guest House. The two sides signed a number of cooperation agreements covering green development and other areas, according to a readout published by China's foreign ministry.

This came after Trump told reporters on 3 March 2026 that the U.S. would 'cut off all trade with Spain' and that he 'told Scott to cut off all dealings' — a reference to Treasury Secretary Scott Bessent. Sanchez's response was to deepen ties with the world's second-largest economy instead.

The Oval Office Threat

Trump's outburst against Spain came during an Oval Office meeting with German Chancellor Friedrich Merz on 3 March 2026. The immediate trigger was Spain's refusal to allow the US to use jointly operated military bases at Rota and Moron in southern Spain in connection with strikes on Iran. A day earlier, Spanish Foreign Minister Jose Manuel Albares had stated publicly that Spain would not permit base use for any military action falling outside the UN charter.

'Spain has been terrible,' Trump told reporters in the Oval Office. 'We're going to cut off all trade with Spain. We don't want anything to do with Spain.' He confirmed he had directed Bessent to 'cut off all dealings' with the country. The US subsequently relocated 15 aircraft, including refuelling tankers, away from the two Spanish bases.

Trump also raised Spain's NATO spending, calling it 'the only country in NATO that would not agree to go up to 5%' of GDP on defence. Spain had proposed meeting its military requirements at 2.1% of GDP, which Trump flatly dismissed. During the same Oval Office session, Trump asked Bessent and US Trade Representative Jamieson Greer for their views on embargo powers. Bessent cited the Supreme Court's confirmation of Trump's authority under the International Emergency Economic Powers Act, while Greer signalled support if national security required it.

Spain's position was complicated by its EU membership. The bloc negotiates trade terms collectively, and European Commission spokesperson Olof Gill stated the Commission would 'always ensure that the interests of the European Union are fully protected.'

The High Quality Investment Agreement and Green Cooperation

The four-day visit, which ran from 11 to 15 April 2026, was arranged at the invitation of Chinese Premier Li Qiang and confirmed by Chinese Foreign Ministry spokesperson Mao Ning on 8 April 2026. Sanchez met with Xi Jinping, Premier Li Qiang, and Chairman of the National People's Congress Standing Committee Zhao Leji during the trip.

Ahead of the visit, Bloomberg reported on 10 April 2026, citing people familiar with the preparations, that Spain and China planned to sign a High Quality Investment Agreement. The deal was designed to ensure Chinese investments in Spain involve technology transfers to domestic companies, contracts for local suppliers, and job creation in host regions.

A readout from China's foreign ministry confirmed that the two sides signed 'a number of cooperation agreements in green development and other fields' during the Xi-Sanchez meeting. Xi told Sanchez that both countries should use platforms including the Mixed Committee on Economy and Trade and the Joint Commission on Science and Technology to jointly promote development in fields including artificial intelligence, the digital economy, and new energy. He specifically expressed hope that Spain would offer a 'fair, equitable, safe and non-discriminatory business environment' for Chinese enterprises.

Sanchez said during the meeting that Spain 'supports the principles of free trade and open markets, opposes trade wars, and is willing to continue playing a positive role in promoting the healthy development of EU-China relations,' per the Chinese foreign ministry readout. He added publicly after meeting Xi: 'Trade wars are not good, nobody wins. And this is clear, the world needs both China and the United States to talk.'

Washington's Counter-Warning and the Geopolitical Calculation

The U.S. did not stay silent as Sanchez flew east. Speaking before the visit, Treasury Secretary Scott Bessent warned that Spain, or any country that tries to get closer to China, would be 'cutting their own throat' because Chinese manufacturers would look to dump goods they can no longer sell in the US into European markets. The warning carried an implicit message: closeness to Beijing in a tariff war brings its own economic costs.

Xi made no direct mention of Trump or U.S.-China tariffs during the meeting, though he referred to 'multiple risks and challenges' facing the world and said they could only be addressed through 'unity and cooperation.' He called on Western nations to support multilateralism and open trade. Alicia Garcia-Herrero, chief economist for Asia Pacific at French bank Natixis, told the Associated Press that the visit gave Sanchez a chance to 'get a leadership position in Europe at a time when the transatlantic alliance is not only at risk but in shambles.'

Spain is the eurozone's fourth-largest economy, with roughly 49 million people and bilateral trade with China exceeding £39 million ($50 million) in recent years, making China its largest trading partner outside the EU. Spain generates more than half of its electricity from renewable sources and has an acute need for critical raw materials, solar panels, and green technologies from China to sustain that transition. Those economic realities gave Sanchez reasons to sit at the table in Beijing regardless of pressure from Washington.

Trump threatened to end America's relationship with Spain; Sanchez responded by signing deals with the one power Washington most wants Europe to keep at arm's length.