Defense will endorse the Chinese factory next to the Ferrol arsenal despite alerts attributed to the CNI

The Ministry of Defense has cleared in just 48 hours the doubts about the future Chinese electric car factory in Ferrol. Margarita Robles has informed the president of the Xunta, Alfonso Rueda, that her department will issue a favorable report on the SAIC Motor project, located five kilometers from the Navy arsenal and the Navantia military shipyard.

The minister has guaranteed that Defense will not oppose the investment, although it may set the "necessary operational conditions." These precautions would affect usual issues in the vicinity of military installations, such as the use of drones or the communication of certain maneuvers and port movements.

The announcement comes after alerts attributed to the Army and the National Intelligence Center regarding a possible risk of Chinese espionage came to light this Monday. The chosen location raised suspicions due to its proximity to one of Spain's largest arsenals and shipyards that build vessels with US military technology.

The Government responded from the outset that national security was being evaluated and maintained its support for the factory. Óscar López defended on Monday that the project was important for Spain and opened the door to introducing additional measures that would allow industrial activity to be compatible with the protection of military installations.

An investment of 200 million pending the Council of Ministers

Defense's approval removes one of the main obstacles, although the final authorization must be approved by the Council of Ministers. SAIC is majority-controlled by the Chinese State and the operation affects the outer port of Ferrol, considered critical infrastructure. The investment is therefore subject to the prior control established for certain companies from countries outside the European Union.

The company, owner of the MG brand, plans to invest some 200 million euros and assemble up to 120,000 vehicles per year. Initial estimates point to a thousand jobs, while the full development of the industrial and logistics complex could raise the figure to 2,300 jobs.

The factory will allow SAIC to produce within the European Union and reduce the impact of tariffs applied to electric vehicles imported from China. The group currently bears an additional rate of 35.3%, the highest of those imposed by Brussels on Chinese manufacturers, in addition to the ordinary tariff of 10%.

The project has united the central government and the Xunta despite their political differences. Pedro Sánchez showed interest in the investment during his trip to China, and Rueda also made direct efforts for Ferrol to be the chosen location. The Galician Executive later declared it a strategic industrial project.

Rueda had expressed his discomfort over suspicions that arose after months of conversations between administrations. The Galician president urged the government to protect national security without letting an investment that he considers historic for a region punished for decades by naval reconversion slip away.

The mayor of Ferrol, José Manuel Rey Varela, and leaders of Sumar also questioned whether an automotive plant could function as a cover to spy on the arsenal. The popular mayor pointed to possible business interests, while Enrique Santiago linked the controversy to the economic and military struggle between the United States and China.

SAIC wants to start construction in 2027 and put the factory into operation during 2028. The file now goes to the Council of Ministers, which must authorize the investment before the machines enter the grounds of Ferrol's outer port.