Spain to greenlight Chinese car plant near naval base despite espionage fears

Spain's Defence Ministry has confirmed it will approve a plan by Chinese state-owned automaker SAIC to build a car factory in the northwestern region of Galicia, a spokesperson said on Tuesday. The decision comes despite media reports that Spanish intelligence had flagged potential espionage risks due to the site's location near a key naval facility.

The plant, which will manufacture up to 120,000 MG-branded vehicles annually, is scheduled to break ground in 2027 and begin operations the following year. It is part of a broader wave of Chinese automotive investments in Spain, often seen as a lifeline for regions that have lost existing car manufacturing jobs.

Spanish newspapers reported on Monday that intelligence services had warned in internal documents about the risk of spying from the facility, which would be built just five kilometres from Ferrol — a major port for the Spanish navy and a maintenance hub for F-100 frigates involved in NATO missions. Unnamed military sources were cited as saying officials feared the Chinese company could gain access to sensitive information about the navy's daily operations.

In response to those reports, a spokesperson for the Galician regional government said Defence Minister Margarita Robles had called the region's leader on Tuesday to assure him of her support for the project when it goes before the cabinet. The regional spokesperson added that the Defence Ministry had been in talks with SAIC for months and had expressed "no concern regarding security."

A defence ministry spokesperson echoed that position, confirming the project would still be reviewed by a Strategic Investments Committee, which could attach conditions on matters such as security. The spokesperson declined to specify what conditions, if any, the ministry might seek.