Aragon and China: a rapprochement between innovation and necessity

The Minister of Agriculture of the Government of Aragon, Javier Rincón, alluded this week to the possibility of 
exploring the Asian market, and more specifically the Chinese one, as a response to the threat of 20% tariffs from the United States on the European Union. The trade war unleashed by President Donald Trump, at the expense of clarifying its impact, is the latest episode in a series of events that have brought the Community closer to the Asian giant, protagonist for example of multi-million pound investments in the 
automotive sector or new technologies.

While it’s not the only market to explore, according to Rincón and other DGA representatives, the potential tariff crisis is leading Aragon to look to its eighth largest exporter . Last year, only neighboring China, France, Germany, Italy, Portugal, the United Kingdom, Turkey, and Poland were above China, according to data from the Tax Agency’s Customs Department compiled by the Aragonese Institute of Statistics (IAEST).

The country led by Xi Jinping captures 2.84% of shipments from Aragon, worth almost €476 million (€475,913,339) , and represents a goldmine for pork. This is indicated in a report by the regional government itself from September last year, based on Icex records, with the swine fever virus in Chinese territory as a turning point on the upside, to the point of reaching the export peak to date in 2020 (€753 million). In 2023, the figure was around €320 million , and between January and July of last year, €185 million between fresh or chilled meat, frozen meat, hams, and shoulders.

However, despite the slowdown resulting in a 57.5% drop, China remained the main destination for Aragonese pork in 2023, ahead of Italy (244.97 million), Poland (188.85), Romania (176.23), Japan (153.84), France (128.24) and South Korea (103.80). It is also the main destination for Spain as a whole, with movements exceeding 
1.2 billion euros (1,205.96). This drop has another consequence in having “significantly reduced the dependence of the pork sector on exports” to the Asian giant, an issue that caused headaches at the end of last year, also due to tariffs, although this time from the Chinese government on pork and in response to the taxes against electric vehicles.

The weight of the Chinese market is growing in relation to imports. It was the second most used by Aragon in 2024, according to Iaest, and represents 12.96% with 2,251.8 million, only below France (3,358.2) and opening a significant gap with Germany, Morocco, Portugal or Italy. From the historical series, Aragon exports to China about 350 million more than ten years ago, although the increase does not reach a percentage point (2.06% in 2014 and 2.84% in 2024), and imports 1,227 more (12.19% to 12.96%).

THE GIGAFACTORY, LEAPMOTOR AND THE CHUECA JOURNEY

In recent months, and through fronts that transcend the regional sphere due to the involvement of the Spanish government and several multinationals, the electric vehicle has been another link between the region and the most populous country in the world. In December, the arrival of the CATL gigafactory at the Stellantis Figueruelas plant was made official thanks to the agreement with the American company. The investment, of more than 4 billion euros, and the horizon of full operation by 2028 make it ” one of the most important projects in the world,” according to the Minister of Industry, Jordi Hereu.

In the wake of the battery factory, rumors surrounding other Chinese automotive companies have only grown. 
Leapmotor is reportedly planning to invest another 200 million in Figueruelas to manufacture an electric SUV model, according to Bloomberg several weeks ago. Rumors about the possible arrival of a Chinese MG factory have been circulating since even earlier, although there is no official confirmation and the Aragon government is moving between caution and an open-door policy.

The regional government is planning to embark on its own trade route through China, something Zaragoza Mayor Natalia Chueca did in February , with the aim of strengthening these ties. The mayor visited, among other places, the headquarters of the national oil company. She visited the cities of Beijing, Nanjin, Jiaxing, Haining, and Shanghai, accompanied by business representatives, and announced that TDG Group, which manufactures batteries and other energy storage devices, will be joining the company.