Spanish Prime Minister Pedro Sanchez has called on the European Union to abandon its plans to impose tariffs on Chinese electric vehicles, advocating for a reassessment of the bloc's approach to avoid escalating into a trade war with China, a move that could have significant global implications.

Sanchez believes that Europe is unlikely to benefit from a trade conflict with Beijing. In this regard, he is urging EU authorities to reconsider their position on proposed tariffs of up to 36% on Chinese electric vehicles. The prime minister argues that the current tariffs on equipment imported from China should be re-evaluated.

"We don't need another war, in this case, a trade war. We need to build bridges between the EU and China," Sanchez said. "And from Spain, what we will do is to be constructive and to try to find a solution, a compromise, between China and the European Commission," he added.

Notably, the European Union recently initiated an anti-subsidy investigation into the imports of Chinese electric vehicles, alleging that Chinese manufacturers are unfairly benefiting from government subsidies and flooding the European market with cheap goods. This investigation could lead to tariffs ranging from 17.4% to 37.6%, experts note.

In response, Beijing criticized the EU's actions and warned of potential retaliatory measures. While no official countermeasures have been announced, analysts suggest that China could launch anti-dumping investigations into European exports such as brandy, dairy products, and pork. This move could have a negative impact on economies such as Spain, which is a major exporter of pork.

As tensions escalate, so does the overall economic situation. According to Cui Hongjian, a professor at the Academy of Regional and Global Governance at Beijing Foreign Studies University, a trade war between China and the European Union could start as early as November 2024.