China and Spain Forge Agricultural Trade Bond Amid Tense U.S. Tariff Wars

China enhances trade ties with Spain by signing protocols on pork and cherries, amidst heightened trade tensions with the U.S. The deal indicates possible easing of China's investigation into EU pork exports, benefiting Spanish agriculture and potentially stabilizing broader EU-China trade relations.

China has taken a significant step to strengthen its trade relationships with the European Union by signing agricultural trade protocols with Spain, focusing on pork and cherries. This move emerges as a strategic response amid escalating trade tensions with the United States. Spanish Prime Minister Pedro Sanchez announced the deal during his visit to Beijing, following the U.S.'s decision to increase tariffs on Chinese products to 145% and China's subsequent 125% tariffs on American imports.

The agreement is viewed positively as it includes pork stomach exports to China, addressing a demand not previously met. Daniel de Miguel, the international manager at Interporc, sees the deal as a potential sign that China might ease its anti-dumping investigation into EU pork, initially launched in response to EU tariffs on Chinese electric vehicles.

Analysts like Even Rogers Pay predict this could lead to regulators delaying or relaxing the investigation, similar to recent actions taken regarding EU brandy. The broader trade strategy of Beijing appears to involve stabilizing its economic engagements with major trade partners, including the EU, as highlighted by ongoing discussions on EV pricing. Meanwhile, the EU is recalibrating its tariff policies in response to the U.S.'s shifting trade stance.

(With inputs from agencies.)