For a long time, the port city of Ferrol has been a symbol of Spain's defense efforts.
In the 18th century, the Spanish navy built a weapons depot and shipyard in the almost impregnable harbor of Ferrol. Since then, the city rapidly prospered. Naval engineers created elegant streets lined with glass balconies, which made other cities in northwestern Spain envious. More than a century later, Francisco Franco, the son of a naval officer who later became a Spanish dictator, was also born here.
Today, this city, which has long been troubled by industrial decline, unemployment, and population decline, is becoming known for its warm welcome to Chinese companies entering Spain and Western Europe.
In June this year, one of China’s largest electric vehicle manufacturers chose a tranquil port outside Ferrol as the location for the construction of a large factory. The project is expected to create over 1,000 jobs, and news of this development has been widely welcomed by people in Ferrol.
The New York Times analyzed on October 28 that this reflects a broader consensus within Spain regarding the introduction of Chinese investment. Even amidst election campaigns characterized by intense debates and politicians competing over other issues, there is a general acceptance of the necessity of Chinese investment.
It is expected that Pedro Sánchez’s left-wing government will approve this agreement before the elections on November 29. Even if it does not get approved, the newly elected conservative government is also expected to approve it. In any case, Ferrol will become another city in Spain that relies on attracting Chinese companies for its economic future. These companies align with Spain’s focus on green technology development. Chinese battery manufacturers, solar panel producers, and other renewable energy companies are emerging across various regions of Spain. Over the past year, China’s investment in the electric vehicle sector in Spain has grown faster than that of any other European country.
According to reports, the factory that Ferròr plans to build reflects the trade-off between the short-term economic opportunities brought by Chinese investment in Europe and the long-term risks.
This summer, Spanish media reported that the country's security authorities were concerned that China might use this factory for espionage activities. The Spanish Defense Minister refused to comment on these reports, while local governments quickly denied the accuracy of these reports.
Recently, Rafael Dezcallar, who was the Ambassador of Spain to China, said: "The question is, how much do we are willing to pay to maintain such a mutually beneficial relationship with China?"
In this city of Ferrol, with a population of about 65,000, it is difficult for residents to see any disadvantages associated with this factory. They see it as a great opportunity for the city to rejuvenate itself. Over the past few decades, the Spanish Navy has stationed part of its fleet in more southern regions, and competition from Asia has continuously eroded the local shipbuilding industry, leading to the loss of jobs and a rapid decline in population.
Sixty-eight-year-old Rosi Vásquez, carrying groceries she'd bought, walked past dozens of shops in the city that had closed down one after another. "So this factory is from China, what does that have to do with anything? It means everyone has a job."
Leon University historian Alfredo Martín García has long studied his hometown of Ferrol. He believes that this investment is likely to "fundamentally change the nature of this city." He said, "It will change the historical trajectory of Ferrol over the past 300 years."
Supporters also said that this factory could bring new hope to Spain's automotive industry.
Although Spain does not have a competitive domestic flagship car brand, it continues to produce fuel-powered vehicles for car manufacturers in other countries. Traditionally, these vehicles are mainly supplied to car companies in Europe and the United States. This industry accounts for 10% of Spain's Gross Domestic Product (GDP), which is comparable to that of the tourism industry. Spain is also the second-largest car exporter in Europe, after Germany.
Facing the risk of the automotive industry losing jobs due to its transition to electric vehicles, Spanish officials hope that Chinese companies establishing factories in Spain will enable Spanish workers to master the relevant technical skills, thereby making them an indispensable part of Europe's emerging green industrial chain.
Although the Ferraro project has received support from various political parties in Spain, some people question whether Sánchez is too close to China.
Over the past four years, Prime Minister Sánchez has visited Beijing four times. In April this year, he proudly stated, “Our political dialogue with China has reached its highest level in 53 years.”
According to reports, however, some agreements reached between Spain and China have raised concerns in Washington.
In 2025, the Spanish government signed a contract with a Chinese telecommunications equipment giant, which was responsible for digitizing and storing communication information intercepted by the police. Since this Chinese company was considered a security risk by Washington, the House and Senate Intelligence Committees of the United States subsequently requested a review of the confidential information sharing agreements between the United States and Spain.
The Spanish left-wing government emphasizes that there is no risk of China obtaining relevant information from this system. Moreover, this information pertains to judicial investigations, not counter-espionage efforts.
In August this year, Spain’s main center-left daily newspaper, El País, reported that the Spanish Ministry of Defense expressed concerns that Chinese intelligence agencies might be using the Ferrol factory to monitor Spanish naval bases. These bases are home to warships equipped with American-made missile interception systems.
Ferrão's conservative leader in the Galician autonomous region, Alfonso Rueda, complained that the Ministry of Defense's "these statements" surprised him. Subsequently, his office issued a statement saying that the Ministry of Defense had informed them that the evaluation report regarding this automobile factory would be "supportive".
Local residents, including the mayor of Ferrol, suggested that these reports might be deliberately spread by neighboring port cities out of jealousy. Few in the local community expressed concerns about this.
At the age of 77, Father Pedro Rodríguez Paz walked out of the city’s main cathedral and welcomed the factory. A military ship was docked near the cathedral. He believed that the arrival of the factory could bring Ferrol back to its former “golden age,” with a large number of workers, “new buildings, and more baptism ceremonies.”
Similar optimistic voices can be heard in the Naval Museum of this city, the heavily guarded armory, the octopus restaurants, and on those increasingly dilapidated streets around the birthplace of Franco.
43-year-old María José Valle Leivas said in her own bookstore: "What matters is work and income. This affects whether we can save the city. Everyone here hopes for factories to set up shop."
