Chinese President Xi Jinping told Spanish Prime Minister Pedro Sánchez in Beijing that the international order is crumbling into disarray, using language that conveys both chaos and moral decay, during Sánchez’s fourth state visit to China in four years.
The meeting, held from April 11 to 15, 2026, resulted in the signing of 15 cooperation agreements covering trade, energy, education, agriculture, and technology, with both sides pledging to deepen their comprehensive strategic partnership.
Xi’s remarks reflect growing concern among global financial leaders about the economic fallout from the ongoing war in Iran, which has disrupted shipping through the Strait of Hormuz, a chokepoint for about 20% of the world’s daily oil supply.
BlackRock CEO Larry Fink warned the BBC in late March that the conflict could push oil prices to either $40 a barrel if Iran reintegrates into global markets, or to $150 if the war drags on, triggering years of supply disruption and a potential global recession.
The International Monetary Fund echoed those fears in its April 2026 World Economic Outlook, cutting its global growth forecast to 3.1% for the year and warning that without the Iran conflict, it would have raised its projections instead.
In the worst-case scenario, global growth could fall to just 2%, the threshold economists use to define a global recession, with emerging and developing economies expected to suffer the most.
Yet the U.S. economy continues to outperform other developed nations, with the S&P 500 recovering all losses tied to the war’s onset, prompting some analysts to cite the so-called Trump TACO trade as a resilient market force.
Economist Scott Sumner noted in a recent essay that recurring recession warnings have become background noise, as forecasters consistently fail to predict downturns despite their frequency.
China and Spain used the visit to reaffirm their commitment to multilateralism, with Spain reiterating its support for the one-China principle and both nations agreeing to establish new diplomatic and strategic dialogue mechanisms.
The two countries also pledged to expand cooperation in new energy, smart economies, and technology, framing their partnership as a model for independent development in a turbulent global landscape.
China said it stands ready to import more Spanish goods and encourages Chinese firms capable of investing in Spain to do so, while Spain believes deeper ties in technology and green energy will boost its resilience and growth.
Why did Xi Jinping describe the world order as “crumbling into disarray”?
He cited the destabilizing effects of the Iran war, including disrupted oil flows and rising economic risks, as evidence that the current international system is failing, particularly due to what he described as the United States’ unilateral approach.
What specific outcomes came from Sánchez’s visit to China?
The leaders signed 15 cooperation agreements, agreed to set up diplomatic and strategic dialogue mechanisms, and pledged to expand collaboration in trade, new energy, smart economy, education, agriculture, and cultural exchanges.
