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| More and more Chinese investors are coming to invest in Spain |
Data from investment firm Baker McKenzie shows Spain has
become the seventh-most attractive European country as far as Chinese
investment goes, with over €1.7 billion of Chinese money entering the Spanish economy during 2016.
China, which is the second-largest economy following the
United States, has started to become a more active investor in Western
economies for some time now, and is a great investor in African infrastructure.
Most of the Chinese money entering Spain during 2016 went
into infrastructure, entertainment, and the real estate industries. The Dalian
Wanda group is one of the primary investors in real estate industries as China
is purchasing commercial and residential property across Spain.
Other areas of Spain that have felt the financial clout of
China are the sport industry (including a €200 million purchase of La Liga
football club RCD Espanyol by toy car magnate Chen Yansheng), aviation, and the
environment.
Baker McKenzie partner Maite Diez says that Chinese investors have been attracted to sectors in European countries such as the food
industry because they gain access to supply chains. There is a growing demand
for high-quality products in China, so these investors are keen to get their
hands on them.
Chinese people are fans of Spanish products including wine,
cheese, and olive oil, while the country is also beginning to embrace Spanish
films and fashion. Tourism is also a major draw or the Chinese; Spanish cities
are becoming hot destination for the growing middle class of China. They may
still avoid the beach resorts of the country, but they are drawn by the inland
areas.
Many European destinations are becoming cheaper for travel
and investment for Chinese people, and this has caused an increase in demand as
a result. While the typical Chinese tourist would once want to take selfies in
front of Big Ben in London, the modern Chinese tourist wants to head all over
Europe, including Spanish wine country and Provence in France.
Chinese firms have become quick to build up portfolios of
Spanish real estate. They are investing in more than just residential
properties too; picking up hotel chains, shopping malls, and movie theatres.
Much of the Chinese investment in Europe is still going to
the UK, Germany, Switzerland and Finland, but Spain saw the sharpest rise in Spanish investment.
