Technological exchanges between Spain and China could not only boost bilateral innovation and economic growth but also benefit the EU and the international community.
Following the establishment of diplomatic relations between Spain and China in 1973, technological exchange has been one of the most dynamic pillars of their bilateral relationship, particularly over the past two decades. Through collaboration in sectors such as renewable energy, artificial intelligence (AI), and biotechnology, both countries have achieved mutual benefits that have strengthened their competitiveness.
The technological exchange comes in the era of globalization of innovation, where the boundaries between the origin and application of new technologies are increasingly blurred. Though Spain and China are integrated into global value chains in different ways, it has not prevented them from finding common ground and collaborating.
Specifically, in the last two decades, China’s progress in the technological field has been remarkable. From being merely a recipient of foreign technology, it has evolved into a global powerhouse in research and development (R&D), with its own capabilities in sectors such as AI, telecommunications (particularly with companies like Huawei and ZTE), and renewable energy.
Spain has also strengthened its position in sectors such as biotechnology, clean energy, and industrial digitalization, establishing itself as a key player within the European technological ecosystem.
The world's first passenger-class electric unmanned aerial vehicle developed by China manufacturer EHang is exhibited at the 2024 Mobile World Congress (MWC) in Barcelona on April 2, 2024.
A Timeline of Cooperation
The success of Spain-China technological exchange would not have been possible without the support of government policies. At an institutional level, bodies such as Spain’s Ministry of Science, Innovation and Universities and China’s Ministry of Science and Technology have been key in promoting joint R&D initiatives as well as collaboration between companies and universities. Since the signing of their comprehensive strategic partnership in 2005, both countries have implemented a series of agreements and regulatory frameworks to strengthen collaboration in R&D and facilitate technology exchange.
One of the most significant agreements is the memorandum of understanding on scientific and technological cooperation signed in 2011. Subsequently, Chinese President Xi Jinping made a state visit to Spain in 2018, which led to the signing of a joint declaration and memoranda that revitalized the bilateral strategic relationship.
The joint declaration has a section dedicated to the development of closer cooperation in science, technology, and innovation. Specifically, it pledges to strengthen collaboration between scientists from both countries, develop R&D and innovation (R&D&I) projects within the framework of joint bilateral programs, and promote cooperation in areas such as industrialization in strategic and expanding fields like quantum metrology, chemistry, new materials, and biology, as well as boosting tourism innovation.
The first memorandum is on strengthening cooperation in third markets, the second addresses employment and social security, and the third on cooperation in science, technology, and innovation in the field of advanced materials.
Additionally, the Joint Action Plan 2020-2025 issued in 2018 includes technology as one of the fundamental pillars for strengthening the bilateral relationship, with emphasis on the development of digital and sustainable technologies.
Furthermore, 2023, the year of the 50th anniversary of Spain-China diplomatic relations, was also celebrated as the Spain-China Year of Culture and Tourism, which significantly boosted bilateral relations. The next year, a memorandum of understanding followed to encourage joint research and facilitate science and technology personnel’s participation in high-impact national research projects.
As a result of these efforts, organizations in Spain, such as the Center for the Development of Industrial Technology, have developed specific documentation and funding for R&D&I collaboration and the implementation of bilateral technological projects with China, such as CHINEKA, an industrial cooperation program between Chinese and Spanish hi-tech firms.
Huawei's three-part foldable smartphone is put on display at MWC 2025 in Barcelona, March 6, 2025.
Tensions and Divergences
But despite the achievements, bilateral technological exchange faces several challenges. Among the most significant is the commercial and geopolitical tension between China and the EU. This tension has created uncertainty in technology-dependent sectors such as the automotive industry, as well as in the transfer of technology itself, leading to increased scrutiny over intellectual property and data security. Moreover, this escalation in tension could extend further, affecting additional sectors.
Another obstacle is the difference in regulatory and cultural systems. While China maintains a centralized approach to information management and data control, Spain operates within a more open regulatory environment subject to EU directives. This divergence can create friction in technological cooperation, particularly in sensitive sectors such as telecommunications and AI.
The gap in R&D investment remains a challenge as well. China’s investment in R&D has grown significantly in recent years, approaching three percent of its GDP, while Spain’s remains below two percent. This could limit Madrid’s ability to attract large-scale Chinese technological investment and establish more competitive alliances.
Spanish booth showcases its scientific and technological innovation achievements in the international exhibition area at the 25th China Hi-Tech Fair on November 15, 2023.
Opportunities amid Difficulties
Looking ahead, the technological relationship between Spain and China will face significant challenges arising from the evolving geopolitical and commercial landscape, as well as from regulatory, cultural, and industrial differences. Nevertheless, these relations also present substantial opportunities in emerging areas such as digital transition and sustainability, in addition to more traditional sectors like agri-food and tourism. To maximize the benefits of this cooperation, it will be crucial for both countries to continue improving policies that facilitate open and secure exchange of technology while effectively managing any differences that may arise.
In conclusion, the technological relationship has the potential to be a key driver of innovation and economic growth in the coming decades, benefiting not only both economies but also the EU and the international community.
___________________
DIEGO SANDE VEIGA is a professor with University of Santiago de Compostela, and coordinator of the Research Line in Economics and Secretary of IGADI.
