The tension between the United States and China has reached the doorstep of Spain. The Spanish government, led by Pedro Sánchez, is facing an unprecedented ultimatum from Washington: terminate contracts with the tech giant Huawei or risk severe limitations on intelligence sharing. This conflict threatens bilateral relations and national security, representing not just a trade dispute but a manifestation of deep geopolitical distrust.
The catalyst is a €12.3 million contract awarded to Huawei by the Ministry of the Interior. This agreement enables the Chinese company to manage the servers and consulting services used for storing judicial wiretaps, a measure that has raised alarms within the U.S. intelligence community. The U.S. National Intelligence Director, Tulsi Gabbard, has been clear: if Spain does not break these contracts before the end of August 2025, the consequences will be serious.
The Epicenter of the Controversy: Security and Espionage
The root of the problem is not the price but security. For Washington, Huawei’s presence in critical systems, such as those storing sensitive information, poses a strategic vulnerability. Chinese legislation requires companies like Huawei to cooperate with the Chinese Communist Party (CCP) on intelligence matters, a situation the U.S. considers a direct threat to NATO and EU secrets.
American discontent became public following the revelation of the contract by The Objective in July 2025. The chairpersons of the U.S. Senate and House Intelligence Committees, Tom Cotton and Rick Crawford, reacted immediately. They characterized Spain’s decision as “playing with fire” and requested Gabbard to urgently review intelligence agreements with Madrid.
Spain’s Defense Against Global Pressure
The Spanish government has tried to calm the waters. It argues that Huawei’s system is a “sealed storage” with no connection to external networks, thereby minimizing the risk of leaks. Furthermore, they contend that the contract was awarded because it was the most cost-effective option, complying with the law. Spain also highlights its geostrategic role as a key NATO partner, with vital bases like Rota and Morón, asserting that military cooperation with the U.S. is solid and unbreakable.
However, this stance clashes with those of other allies. Countries like the United Kingdom, France, and Sweden have banned or restricted Huawei in their critical networks, following Washington’s directive. Spain’s lukewarm position concerning China, framed within its strategy to attract investments, has generated tensions with its partners, who see this ambiguity as an unnecessary risk.
What Does Spain Stand to Lose?
The Spanish crossroads has multiple ramifications:
National Security: Should the U.S. follow through on its threat, Spain could see its ability to combat terrorism, organized crime, and cyber threats severely limited, undermining mutual trust in joint operations.
Diplomatic Relations: The ultimatum marks a peak of tension with Washington, a historical ally in NATO. The final decision could set a precedent in transatlantic relations.
Internal Repercussions: The controversy has generated discontent among key sectors of Spanish security, such as the Police, Civil Guard, and CNI, who are concerned about managing sensitive data by a company the U.S. does not trust.
The Chinese Stance: The Chinese embassy in Spain has branded the U.S. criticism as a “typical bullying act” and urged Washington not to interfere in the commercial decisions of a sovereign country.
Three Possible Scenarios
As the end of August deadline approaches, Pedro Sánchez’s government faces three main options:
Yield to the Ultimatum: Terminate contracts with Huawei. This would appease Washington and maintain intelligence flow, albeit generating tensions with China and economic costs for Spain.
Maintain the Contracts: Defy the U.S. and keep the agreement. This could result in a reduction of intelligence sharing and a severe deterioration of bilateral relations.
Negotiate a Compromise: Seek an agreement with the U.S. that includes additional security measures and mitigates Washington’s concerns without breaking the contract—an option that might be hard to sell.
The decision made by the Spanish government will not only define its relationship with Washington but will also impact its position in NATO, the EU, and its delicate geopolitical balance between the West and China. This case underscores the complexity of operating in a world where technology and diplomacy are intrinsically intertwined.