I have not seen that make of spot welder before. I doubt if the small spring that is visible is the one that determines the clamping force that needs to be applied to the electrodes at the point where the current pulse is triggered. I would expect the upper handle to be set higher since it will need to be squeezed with quite a bit of force. Have you tried screwing in the knurled adjustment so as to raise the upper handle 30mm or so? Squeezing it should then move it against a strong spring until a point is reached where a micro switch is triggered. There may be a separate spring to retract the electrode jaws, though on my spot welder the jaw pivot is a bit stiff, and you merely open the jaws by hand. I presume this is to avoid unnecessary extra work when going along a seam making a series of welds.
If it still does not work, you need to look for a broken or missing spring somewhere.