Spanish PM changes his mind on NEV tariffs

Beijing's carrot-and-stick strategy to divide the EU on new energy vehicle (NEV) tariffs is paying off.

• This was evident during a Wednesday speech by Spanish Prime Minister Pedro Sánchez in Kunshan, Jiangsu.

ICYMI: In June, Beijing announced an anti-dumping investigation into imported EU pork – a top Spanish export.

The probe has caused the Sánchez administration to think twice about its stance on NEV tariffs.

• "I have to be frank, we have to reconsider our position, all of us. Not only the member states but also the (European) Commission." 
• "We don't need another war, in this case a trade war."
• "[Spain will] be constructive and try to find a compromise between China and the European Commission."

It’s not just the sticks at play: Chinese cleantech and auto giants like Envision, Chery, and CATL have recently built or announced major projects in Spain.

Our question: Will Beijing's playbook of economic incentives and targeted retaliatory measures against individual member states be enough to sway the EU’s final tariff vote in October?