Spain must proceed very carefully as it deepens its relationship with China to keep it out of critical sectors such as data, defense, and telecommunications where Beijing seeks to dominate, Benjamin Leon, the US Ambassador to Spain, said on Wednesday.

In one of his first public speeches since taking the job in February, Leon raised concerns that public contracts had been awarded to companies working with Huawei, the Chinese tech giant that Washington says poses 'an unacceptable risk' to US national security.

He stated, "I don't think that attains the level of security at which Spain and the United States are exchanging (information)".

He added, "If Spain ensures that China is kept out of critical areas, why not negotiate (with Beijing).

But I see that they are starting to penetrate into critical areas and Spain must be really careful about this".

Leon further elaborated on the risks posed by China's strategic intentions: "China seeks to dominate critical technologies.

It uses unfair trade practices and economic coercion to expand its strategic influence.

And that poses real risks to our supply chains, our research, and our security," calling on Europe to protect its research, intellectual property, and democratic values.

Leon also addressed the strained relations between President Donald Trump's administration and Spain's leftist government over defense spending commitments and the use of military bases.

He played down the likelihood of US economic or military sanctions against Spain, emphasizing that a compromise would be found to maintain and improve their bilateral relationship.

The US-Spanish naval bases in southern Spain were described as 'fundamental bases for our collective defense,' amid concerns about troop drawdowns in Europe.

Leon concluded by stating, "We live in very dangerous times.

Europe must be prepared to defend itself.

The US will be at its side".