Spanish Defense Ministry and intelligence service flag espionage risk at planned Chinese SAIC auto plant near Ferrol naval base

Security concerns over Chinese auto plant

Spain's Ministry of Defense and the National Intelligence Center (CNI) have raised concerns about a planned SAIC Motor vehicle plant in Ferrol, Galicia, citing espionage risks due to the facility's proximity to sensitive naval installations. The plant would be located approximately five kilometers from the Ferrol naval arsenal and near Navantia shipyards, where F-100 and new F-110 frigates equipped with Aegis combat systems and US military technology are built and maintained. Defense Minister Margarita Robles's department has formally conveyed its worry to the Xunta de Galicia about the possibility that the Chinese state-owned manufacturer, parent company of the MG brand, could use the facility as an intelligence platform to monitor naval movements, record ship activity, and capture electromagnetic signals. The chosen location at the outer port of Ferrol reportedly has direct visibility over the arsenal and the areas where the Navy conducts navigation tests, system maintenance, and logistical maneuvers.

The project involves a 200 million euro investment, with plans to assemble up to 120,000 vehicles annually and create around 1,000 direct jobs, plus a network of auxiliary companies across the region. The plant, slated for 2028, aims to circumvent EU tariffs on Chinese-made vehicles by producing within the European single market. The agreement was reached between the Xunta de Galicia and SAIC Motor, with backing from both the regional government and Prime Minister Pedro Sánchez's administration.

Government and regional defense of the project

Minister for Digital Transformation and Public Function Óscar López defended the project, stating that investments of this scale are analyzed with full normality and that all elements, including national security, are taken into account. He indicated that conditions can be imposed to guarantee security.

These investments are analyzed and it may happen that there are a series of recommendations, from the economic or security point of view, that are addressed and make the operation viable.

Xunta president Alfonso Rueda criticized the surfacing of security doubts, stating that the reports do no favor to the project and that at no point during months of work with the central government was any lack of security or military risk discussed. SAIC Motor has responded through La Información Económica, guaranteeing that the project will be executed safeguarding the national security of Spain in its entirety.

Political contradictions

The Partido Popular, which governs in Galicia and supports the plant, has been accused of a double standard. In 2025, PP deputy secretary general Miguel Tellado described a government contract with Huawei for managing court-ordered telephone intercepts as connecting Moncloa with shady public contracts with a Chinese company Huawei. The Trump administration also asked Spain to cancel that agreement at the time. Minister Óscar López had then defended the contract, saying Huawei had no access to data and only provided devices already in use. Now, the same party that raised alarms over Huawei minimizes security concerns about a Chinese factory near a naval base.

Sumar spokesperson Enrique Santiago dismissed the espionage fears, questioning whether a factory could genuinely threaten national security.

With satellites existing, it's not credible that a factory could be a 'threat'. NATO prevents quality industrial development in Spain.

Former deputy Antón Gómez-Reino Varela also questioned the framing, noting that GPS satellites, economic transactions, communications, internet searches, and data traffic are already in the hands of US companies, showing what he called a brutal dependence on a foreign country.

International context

The concerns come amid heightened vigilance toward Chinese-linked infrastructure near European military sites. In late July, Belgian authorities arrested a Chinese worker at SHAPE, NATO's Supreme Headquarters Allied Powers Europe, on suspicion of espionage. Military sources cited in the articles warn that a facility of this scale near critical installations adds what Defense considers a relevant and not minor vulnerability, and that the mere perception of risk could affect Navantia's image and the confidence of partners such as the United States and NATO.