Spain to approve Chinese car plant despite security concerns

Spain’s Defence Ministry will approve state-owned Chinese carmaker SAIC’s plans to build a car factory in the Galicia region, reports Reuters. This comes despite reports of potential security risks associated ‌with the project’s proximity to a naval base.

SAIC is one of a growing number of Chinese car and battery makers signing deals to set up plants in Spain, in ​some cases providing a lifeline for regions where car factories ​had shut down. The plant, which will build up to 120,000 ⁠cars a year for the MG brand, is due to begin construction ​in 2027 and become operational from 2028.

Spanish newspapers El Mundo and El ​Pais reported on Monday, however, that Spanish intelligence services had warned in internal reports of the risk of espionage from the plant to be built 5km (3.1 miles) ​from Ferrol, a key port for the Spanish navy and a ​maintenance point for F-100 frigates participating in NATO missions. Officials were concerned that the Chinese ‌company could ⁠obtain sensitive information about the navy’s daily movements, the newspapers cited unnamed military sources as saying.