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1、Chinese FDI in Spain:Global Outlook 2023ICEX-Invest in Spain China DeskKPMG China PracticeSeptember 2023 2|Chinese FDI in Spain:Global Outlook 2023About this report“Chinese FDI in Spain:Global Outlook 2023”is a comprehensive survey of the experiences and views of Chinese foreign direct investment(FD
2、I)in Spain.The survey provides insights into the perceptions of the Spanish investment climate of Chinese companies established in Spain,their views on business development,growth prospects,as well as business and operational strategies they foresee in the country.In April and May 2023,ICEX-Invest i
3、n Spain and the KPMG team sent an online anonymous survey link to senior executives in Chinese-owned companies with investments and a presence in Spain.These companies operate in a broad range of sectors,including banking and insurance,consumer and retail,energy,information technology,infrastructure
4、 and engineering,transport and logistics,manufacturing,telecommunications,life science,and leisure and tourism,among others.In total,80 valid responses were received.In addition,to supplement the survey findings,ICEX-Invest in Spain and the KPMG team conducted eight in-depth interviews with executiv
5、es of these Chinese-owned companies.We interviewed executives of both private and state-owned firms from a wide range of backgrounds and industries.ICEX-Invest in Spain and KPMG gratefully acknowledge the generous support of the China Chamber of Commerce and Investment to Spain in facilitating the c
6、ollaborative efforts.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Chinese FDI in Spain:Global Outlook 2023 3|Index 2023
7、KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.3|Chinese FDI in Spain:Global Outlook 2023 Key findings.8Authors and key contact
8、s.40Foreword by David Hhn,Partner Head of China Practice at KPMG Spain.07Foreword by Elisa Garca,Executive Director of ICEX-Invest in Spain.06Final words.38Survey demographics100116Business climate and company operations0230Economic,sectorial and business perspective03 4|Chinese FDI in Spain:Global
9、Outlook 2023 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The vision ofChinese FDI in Spain:Global Outlook 2023 5|The vi
10、sion of 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.5|Chinese FDI in Spain:Global Outlook 2023The vision ofLan ChengHR
11、Director EMEATrina TrackerPg.29Luis VillarroyaChairmanEptisaPg.35Shuli ShenGeneral Manager SQ Insertec EuropePg.35Ignacio HerreroCEO China Three Gorges(Europe)Pg.21Eduardo BavieraCEOClnica BavieraPg.29Shanmei YuGeneral Manager Keewaymotor SpainPg.19Javier LamasCEO Aldesa GroupPg.23Bo WangGeneral Man
12、ager China Construction Bank(Europe),Spanish BranchPg.156|Chinese FDI in Spain:Global Outlook 2023The vision ofElisa GarcaExecutive Director of ICEX-Invest in SpainTo its inhabitants,China is known as Zhnggu(中国),the central country.This aspiration of centrality,driven by Chinese culture itself,has b
13、ecome an indisputable reality at a global level.China is now one of the worlds geopolitical focal points.Very few countries in history have come so far in such a short time as this Asian giant has.China is already the second global power in terms of GDP and has also reached a position of global lead
14、ership in terms of international trade.The Chinese economy currently has a solid and dynamic corporate landscape that draws on cutting-edge technology.At present,346 Chinese businesses are among the worlds 2,000 most important corporations,according to the 2023 Forbes Global 2000 Companies List.Than
15、ks to this dynamic business structure,China is a global power in manufacturing,the export of goods and is at the forefront of technological innovation.Furthermore,the Asian country has also become one of the largest capital exporters globally.In fact,outward FDI stock from China has increased fivefo
16、ld in just ten years,rising from the equivalent of US Dollars 532 billion in 2012 to over US Dollars 2.5 trillion in 2021.This is a very impressive figure,but it is still well below its potential.Chinese investment reflects a relatively low volume given the scale of the countrys economy.Outward FDI
17、stock from China barely represents 15%of Chinas GDP.This is a rather low percentage when compared to foreign investment made by developed countries,such as the United Kingdom,France,Spain and the United States.Over the coming years,we will likely see the coalescence of major Chinese investment proje
18、cts in developed countries,albeit in a more uncertain and fragmented international context compared to the previous decade.These investments will also have to take into consideration screening mechanisms and foreign investment controls,which are already a reality in a growing number of countries.Spa
19、in is a country extremely open to foreign investment.According to the FDI Regulatory Restrictiveness Index,Spain is the ninth least restrictive OECD country for foreign investment from a regulatory perspective.Once established in Spain,foreign investors,whatever their nationality,receive exactly the
20、 same treatment as their Spanish counterparts.This is the regulatory framework that awaits Chinese companies when putting down roots in Spain.Against this backdrop,investment in Spain by Chinese companies is evolving in a similar fashion to that of direct investment by the Asian giant globally.Its i
21、nvestment stock in Spain has risen from the equivalent of Euros 46 million in 2010 to reach over Euros 10 billion in 2018,a figure which has remained relatively stable since.These statistics make China the 12th largest investor in Spain.Chinas significance as an important world power,its pivotal rol
22、e in the geopolitical challenges the world is currently facing and its growing relevance as an investor in Spain,are just some of the factors that have brought about the preparation of this document“Chinese FDI in Spain:Global Outlook 2023”,which has been drafted in conjunction with KPMGs China Prac
23、tice.The primary purpose of ICEX-Invest in Spain is to attract foreign direct investment in the country that is both sustainable and that creates quality jobs.We firmly believe that gaining an in-depth understanding of the current Chinese FDI reality in our country and its contribution to our econom
24、y is key to ensuring that we perform our work even better.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The vision ofChin
25、ese FDI in Spain:Global Outlook 2023 7|David HhnPartner Head of China Practice at KPMG SpainWe are delighted to present the“Chinese FDI in Spain:Global Outlook 2023”report,in collaboration with ICEX-Invest in Spain.This comprehensive investigation explores experiences and perspectives regarding Chin
26、ese foreign direct investment in Spain and provides valuable insight into the perceptions of Chinese companies operating in the country.The report also sheds light on their views regarding investment,business development,growth prospects,and business strategy.In 2022,China became Spains largest good
27、s supplier.As we celebrate the 50th anniversary of diplomatic relations between China and Spain this year,it is an opportune moment to reflect on the strong economic ties between the two nations.This joint effort between ICEX and KPMG demonstrates our proactive approach to fostering a deeper underst
28、anding of and promoting this economic relationship.We foresee that cooperation between China and Spain will expand into various fields in the coming years,including the digital economy,agriculture,automotive manufacturing and renewable energy development,among others.Chinese companies have emerged a
29、s major players in many sectors of the Spanish economy,including transport and logistics,energy,information technology,manufacturing,life sciences,and infrastructure and engineering,among others.Their significant contribution to economic development,job creation,and bilateral trade between China and
30、 Spain has become increasingly important over the past decade.Moreover,most Chinese companies believe that strong bilateral relations at institutional level between China and Spain are hugely important for steering their businesses successfully in Spain.Based on this report,conducted through surveys
31、 and personal interviews,almost 80%of Chinese company executives foresee economic growth in Spain during the 2023-2024 period.Their overall view for the next 12 months is optimistic,expressing confidence in achieving increased sales,growth in investment,and employment stability.This optimism is embe
32、dded in their strong commitment to advancing digital and sustainable transformation,where they recognise that success in these areas will determine their medium and long-term growth prospects in an increasingly competitive and changing environment.However,these executives also emphasise the need to
33、further develop institutional support in Spain for their business activities.For example,they expect to receive comprehensive information concerning tax incentives related to research and development,innovation,and new investments.In addition to these topics,talent management poses a new challenge.C
34、hinese companies are aware that the capabilities and skills of professionals are vital for developing differentiated offerings and delivering added value to their clients.Consequently,they consider cross-cultural management and talent retention a key priority for their organisations.We would like to
35、 express our gratitude to the China Chamber of Commerce and Investment to Spain for its invaluable support in facilitating our collaborative efforts.At KPMG,we take great pride in our honoured membership of the Chamber,and its assistance has been instrumental in ensuring the success and reach of thi
36、s survey.We hope that the insights and findings presented in this report contribute to a deeper understanding of the current Chinese FDI situation in Spain,the outlook for growth in the future,and that this will serve as a foundation for enhancing cooperation between the two nations.2023 KPMG,S.A.,a
37、 Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.7|Chinese FDI in Spain:Global Outlook 2023The vision of8|Chinese FDI in Spain:Global Outloo
38、k 2023Key findingsKey findingsChinese companies tend to increase their investments in countries where they have a higher volume of exports.41%of the companies choose to establish subsidiaries,while 25%opt for branches,indicating a long-term committed presence in the Spanish market.The period between
39、 2015 and 2017 saw a significant investment inflow of Chinese companies to Spain.Spains strategic geographical location and its role as a gateway to the European Union and Latam market make it an attractive investment destination.The Chinese investments show a high level of concentration in the Madr
40、id region and Catalonia,while their sector distribution among the companies surveyed is quite diverse.of the companies surveyed have reported that they have received state incentives for training and employment in Spain.30%More thanof the companies view Spain as a favourable environment for innovati
41、on,leading some of them to establish research and development centres in the country.60%2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rig
42、hts reserved.Key findingsChinese FDI in Spain:Global Outlook 2023 9|The integration of expatriates is generally smooth.There are strong affinities between the Chinese and Spanish cultures,sharing similar values and frameworks.The outlook for macroeconomic and sector growth in Spain over the next 12
43、months is largely positive.The most important area that Chinese-owned companies consider forconducting business in Spain is the continuous improvement of operations,among others.of Chinese companies report positive results in terms of their progress in integrating ESG into their strategic and operat
44、ing model.81%Executives consider cross-cultural management and talent retention a key priority for their organisations.Most Chinese-owned companies operating in Spain are planning to expand their presence both in Spain and in international markets within the next year.2023 KPMG,S.A.,a Spanish corpor
45、ation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.9|Chinese FDI in Spain:Global Outlook 2023Key findingsSurvey demographics10|Chinese FDI in Spain:Global Ou
46、tlook 202301Survey demographicsChinese companies have become increasingly involved in various sectors of the Spanish economy through foreign direct investment over the last decade.In this section,we aim to provide an overview of Chinese-owned companies established in Spain.This snapshot encompasses
47、various data points,including the type of establishment(subsidiary,branch,M&A,joint venture,etc.),geographical distribution across regions,and a breakdown of the industries in which they operate.Furthermore,we present data on their turnover and exports in 2022,and their investment in R&D in Spain.20
48、23 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Survey demographicsChinese FDI in Spain:Global Outlook 2023 11|Based on the s
49、urvey conducted among senior executives of Chinese-owned companies established in our country,it can be inferred that many of these companies entered the Spanish market during the second decade of this century,between 2015 and 2017.These survey results also highlight a significant level of commitmen
50、t to the Spanish market,evident from the chosen modes of establishment by the companies surveyed.However,the distribution of these companies across Spain is not evenly spread,with a concentration in the Madrid region followed by Catalonia.In contrast,the breakdown of sectoral activity shows a high d
51、egree of heterogeneity,lacking a distinct pattern.Regarding the type of establishment of the various companies surveyed,a significant proportion are“subsidiaries”and“branches”.The presence of M&A can be attributed to investments made between 2015 and 2020,in line with the trend of Chinese investment
52、 in Europe,which has increasingly involved the acquisition of companies and brands.M&A has emerged as the primary mode of expansion for Chinese multinationals,serving as an essential means to acquire important assets in Europe.In Spain,these acquisitions have mainly focused on sectors such as Agri-F
53、ood,Environment,Construction-Infrastructure,Engineering,as well as other areas like Transport and Logistics,and Energy.Furthermore,a minority of companies are classified as“representative offices”and“joint ventures”,with“representative offices”corresponding to sales offices.There is a clear long-ter
54、m commitment to the Spanish marketPosition of our survey participants CEOC-suite(CFO,COO,CTO,etc.)Director levelMiddle managementOtherPresident25%15%20%22%8%10%According to the survey data,65%of the companies set up their presence in Spain between 2010 and 2020.The highest number of companies were e
55、stablished during the three-year period 2015-2017,accounting for 30%of the companies surveyed.It is worth noting that despite the COVID-19 pandemic,with international travel restrictions in place in China,and new foreign investment regulations in Spain aligned with the European Commissions guideline
56、s,10%of the companies surveyed established their presence in Spain between 2021 and 2023.Chinese-owned companies mostly established in the last decade 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International
57、 Limited,a private English company limited by guarantee.All rights reserved.11|Chinese FDI in Spain:Global Outlook 2023Survey demographics12|Chinese FDI in Spain:Global Outlook 2023Survey demographicsRegarding the geographical distribution within Spain,there is a significant concentration of the com
58、panies surveyed in the Madrid region,followed by Catalonia,with the remaining distributed unevenly among Galicia,the Valencia region,the Balearic Islands,Castilla-La Mancha,the Canary Islands,Andalusia and Aragon.High geographic concentration,a diverse range of sectors,and company turnover,with stro
59、ng emphasis on R&D activities.Companies surveyed in Spain by region Madrid region65%18%Catalonia5%Galicia4%Valencia region3%Baleares1%Castilla-La Mancha1%Canary Islands1%Aragon1%AndalusiaThese findings are in line with statistics from the Foreign Investment Register of the Ministry of Industry,Trade
60、,and Tourism,which indicate that Chinese investment inflows in Spain remained at very low levels until 2010.From that point onwards,there was a significant increase in Chinese investment,driven by large investment groups joining other Chinese companies with a long history in Spain.Spain became an at
61、tractive gateway to European and Latin American markets.Chinese investment flows in Spain began to gain relative importance for the economy,reflecting the trend seen across Europe and the world.The“Go Global”initiative launched by the Chinese government in the early 2000s led to a surge in Chinese i
62、nvestment globally,with many companies expanding abroad.In the case of Spain,the significant influx of Chinese companies occurred from 2012 to 2018.Furthermore,the parent companies of Chinese-owned companies established in Spain demonstrate extensive internationalisation.Among the companies surveyed
63、,a total of 76%have a presence in other countries,primarily in various European countries.In Western Europe,they report a presence in the United Kingdom,Germany,France,Portugal,Greece,Austria,the Netherlands,and Turkey.In Eastern Europe,their presence can mainly be observed in Serbia,Croatia,the Cze
64、ch Republic,Slovenia,Romania,and Hungary.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Survey demographicsChinese FDI in
65、Spain:Global Outlook 2023 13|The Telecommunications sector is represented by major Chinese companies that have established themselves as leading brands in the smart phones and computer equipment segments.The Leisure and Tourism and Life Sciences sectors are characterised by the acquisition of hotels
66、 and specialised clinics,respectively.In the Other Sectors category,companies from various industries can be found,including agriculture,fisheries,home appliances,law firms,healthcare,and public services.It is worth noting the limited presence of companies in the Automotive sector,accounting for onl
67、y 3%of the companies surveyed.However,ICEX-Invest in Spain has identified an enormous interest of Chinese companies in the electro-mobility sector and in the establishment of production plants in Spain.Regarding the activities of the Chinese companies surveyed,they are involved in diverse sectors.Th
68、e standout sector is“Transport and Logistics”,with a particular focus on maritime transport and port logistics,including the acquisition of maritime container terminals.Aside from this sector,Chinese capital investment is distributed heterogeneously across various sectors in the Spanish economy,with
69、out a clear sectoral pattern.Some companies concentrate on Manufacturing,Banking and Insurance,Consumer and Retail,Information Technology,and Infrastructure and Engineering.The latter sector has experienced a boost due to recent acquisitions of Spanish construction and engineering companies,which ha
70、ve increased since 2020.Companies surveyed in Spain by sector 19%8%9%10%18%8%8%8%6%4%3%Transport and Logistics ManufacturingConsumer and Retail Banking and Insurance Infrastructure and Engineering Information Technology EnergyTelecommunications Leisure and TourismLife SciencesAutomotiveOthers3%2023
71、KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.13|Chinese FDI in Spain:Global Outlook 2023Survey demographics14|Chinese FDI in
72、Spain:Global Outlook 2023Survey demographics60%of the companies view Spain as a favorable environment for innovationIn terms of staff,the companies surveyed are varied in size in Spain and include SMEs and large companies.Almost half of them fall in the 1-10 employees or 11-49 employees brackets,whi
73、le medium-sized companies(50-250 employees)represent 35%,compared to 23%for large-sized companies with more than 250 employees.The latter correspond to large telecommunications and IT companies and companies that have made acquisitions in the Construction,Engineering,and Life Sciences sectors.In ter
74、ms of exports among the companies surveyed,it should be noted that 60%of the surveyed companies export part or all of their production.This can be linked to the excellent evaluation of Spain as a platform to access other markets,according to the companies surveyed.On the other hand,it was discovered
75、 that 30%of them sell their goods and provide their services exclusively in the Spanish market.Additionally,35%of the companies export less than 25%of what they produce.This implies that many companies view Spain as an appealing and significant market.Another possible explanation for this market foc
76、us is the presence of subsidiaries of Chinese multinational corporations in other countries,which have been established to target specific countries beyond Spain.R&D has become a vital element in various sectors of activity.According to the survey,34%of the participating companies stated their inves
77、tment in R&D in Spain.Note that specific Chinese-owned companies have selected Spain as the destination for establishing their R&D centres,with the aim of supporting their European subsidiaries.This emphasizes Spains importance as a hub for R&D investment among Chinese-owned companies.Companies surv
78、eyed in Spain by turnover Less than Euros 1 millionEuros 1 million to Euros 5 million Euros 6 million to Euros 19 million Euros 20 million to Euros 49 million Euros 50 million to Euros 99 million Euros 100 million to Euros 199 million Euros 200 million to Euros 499 million More than Euros 500 millio
79、n11%17%18%10%9%20%9%6%2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Survey demographicsChinese FDI in Spain:Global Outloo
80、k 2023 15|Bo WangGeneral ManagerChina Construction Bank(Europe)Spanish BranchSector:BankingQ:As one of the most important Chinese banks established in Spain,are you generally satisfied with the business environment?Do you have any specific comments to make on regulatory requirements?A:The banking an
81、d financial industry is particularly prominent.Our focus is on political,social,and financial stability,exchange rate and interest rate stability,as well as financial regulation transparency.Spains economic structure,based on its economic size and population,provides favourable conditions for differ
82、ent types of financial enterprises to find their own space.We are very satisfied with the overall business environment in Spain.The market is inclusive and generally welcomes foreign investment.Spains market regulatory requirements are relatively stringent,which means that its standards can cover ot
83、her European Union countries faster,saving a significant amount of regulatory costs in operations,IT,and administrative management.It may enable a centralized approach to a certain extent,avoiding redundant execution for many companies.Q:We would like to know your perspective on the significance of
84、bilateral institutional relations between China and Spain.How influential are these exchanges for your companys business development in Spain?Do you have any suggestions for future collaborations?A:All companies expect a stable and friendly political environment and government-level exchanges.Freque
85、nt and friendly institutional exchanges between the two nations will enhance economic and trade relations and improve access to information for companies.In terms of commerce and business,deeper and more intense exchanges between the two countries high-level government officials will enhance the dep
86、th and breadth of collaboration.There is great potential for cooperation in the financial sector,where the Madrid Stock Exchange can collaborate more with Chinas financial markets.For instance,the London,Frankfurt,Luxembourg,Shanghai,and Shenzhen stock exchanges are already interconnected,allowing,i
87、nter alia,market integration,cross-listing,and financial product distribution.We are very satisfied with the overall business environment in Spain.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Lim
88、ited,a private English company limited by guarantee.All rights reserved.15|Chinese FDI in Spain:Global Outlook 2023Survey demographicsBusiness climate and company operations in Spain16|Chinese FDI in Spain:Global Outlook 202302Business climate and company operations in SpainThis section focuses on t
89、he assessment provided by executives of the surveyed Chinese-owned companies regarding the business climate in Spain during 2023.This assessment enables the identification of key strengths that need to be maintained,as well as areas requiring greater attention and efforts.The main areas evaluated pe
90、rtain to Spains labour market,taxation system,regulatory environment,institutional support,market size,infrastructure,logistics platforms,distribution channels,access to financing,availability of aid and incentives,human capital,innovation and digitalisation,sustainability criteria,integration of ex
91、patriates,and quality of life.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Business climate and company operations in Sp
92、ainChinese FDI in Spain:Global Outlook 2023 17|We have analysed the primary reasons cited by the companies surveyed for investing in Spain through personal interviews with senior executives.Notably,geographical location,market size,and infrastructure emerge as the most highly valued factors.In terms
93、 of assessing the business climate in Spain,executives place significant emphasis on quality of life,market size,access to other markets,infrastructure,and integration of expatriates.Furthermore,special attention is given to Spanish and Chinese institutional relations and the evaluation provided by
94、executives.Nearly nine out of 10 companies consider this area to be extremely important.We have also sought their opinions on tax incentive applications,digital transformation,and ESG matters,including sustainability in their daily business operations.They have expressed that these issues are at the
95、 top of their agenda in terms of promoting more sustainable development in Spain.Many Chinese-owned companies prioritise continuous learning and improvement.By regularly assessing their ERP(Enterprise,Resource and Planning)management and digital strategies,these companies demonstrate a proactive app
96、roach to keeping pace with the dynamic business environment in Spain.The success of these efforts also depends on the investment and implementation by these companies in human resources areas.Factors such as resource allocation,talent development,and organisational culture play significant roles in
97、determining the outcomes of such initiatives.Chinese-owned companies have indeed shown a growing interest in Spain as a location to establish their businesses.Several factors contribute to this choice,including geographical location and market size as the most voted.Spains geographical location offe
98、rs strategic advantages for Chinese companies seeking to expand their operations into Europe and beyond.Spain serves as a gateway to international markets.The country boasts a significant market size with a population of over 48 million people.It represents one of the largest consumer markets in Eur
99、ope,providing ample opportunities for Chinese companies to tap into various industries and sectors.The market offers a diverse range of consumer preferences and demands,allowing Chinese-owned companies to cater to different segments.As mentioned above,Spains position in terms of access to other mark
100、ets ranks third as a reason for setting up in our country.It is therefore clear that Spains strategic geographical location as a platform for accessing the EU,North African,Middle Eastern and Latin American markets for cultural reasons is an essential factor for the companies surveyed in deciding to
101、 establish themselves in Spain.Approximately one third of executives surveyed consider the quality of infrastructure in Spain to be a priority reason for establishing their businesses.Spains well-developed transportation,logistics,and communication networks provide a solid foundation for companies t
102、o operate efficiently.Main reasons for investment and establishment in Spain 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserve
103、d.17|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in SpainBusiness climate and company operations in SpainReasons for investment and establishment in Spain76%Geographical location71%Size of the local market44%Access to other markets010%20%30%40%50%60%70%80%Infrastr
104、ucture34%Incentives and subsidies8%R&D framework8%Other9%Ability for expatriates to adapt15%Labour costs30%Qualification of the labour force30%The objective of accessing new consumers through FDI is a common goal for many multinational corporations,including Chinese companies.This is particularly tr
105、ue for Chinese investments in Europe,where the search for new international markets is a significant driver.China tends to invest more in countries to which it exports most,often establishing sales offices to facilitate market penetration.In the case of Spain,market access is a key motivation for Ch
106、inese companies.They view their investments in Spain as a strategic gateway to the European and Latin American markets.According to the survey,Chinese companies rate the market size very positively,with an average score of 8 on a scale of 1 to 10.A significant 60%of the companies surveyed consider t
107、hat the size of the local Spanish market merits a score of between 7 and 10,indicating its attractiveness for marketing their products and/or services.Moreover,only 17%of the companies surveyed rated the market size below 5.This assessment is in line with similar studies conducted among foreign comp
108、anies,which consistently highlight market size as one of the primary attractions for investing in Spain.Overall,Chinese-owned companies in Spain prioritise market access,particularly the size of the European and Latin American markets.They view their investments in Spain as an effective means to tap
109、 into these markets,highlighting the market size as a significant advantage for doing business in the country.18|Chinese FDI in Spain:Global Outlook 2023Around 30%of the companies surveyed view labour costs as a significant factor in choosing Spain.The comparatively competitive labour costs in Spain
110、 make it an appealing destination for companies looking to optimise their operational expenditure.Similarly,30%of the companies surveyed acknowledge the qualification of the Spanish workforce as a reason for establishing their businesses in Spain.The availability of skilled and educated professional
111、s provides companies with the talent pool necessary for their operations.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Bu
112、siness climate and company operations in SpainChinese FDI in Spain:Global Outlook 2023 19|Shanmei YuGeneral Manager,Keewaymotor SpainSector:AutomotiveQ:Which areas of the business climate does your company highly value in Spain?A:We highly value the Spanish market size and its position within the EU
113、 market.Spain is the fourth-largest consumer of motorcycles in Europe,behind Italy,Germany,and France.The country has a strong motorcycle culture and tradition,with Barcelona having the highest motorcycle ownership per capita in Europe.This makes it a significant market for Keeway Group,as many indi
114、viduals in Barcelona own 1.5 to 2 motorcycles.The insights gained from the Spanish market are instrumental in our research and development,design,and future technological advancements.Furthermore,the mature consumer market and overall design control in Europe provide valuable guidance for our operat
115、ions in China.Q:Working in a multicultural team that includes both Chinese and Spanish executives can be challenging.How do you evaluate the integration of Chinese executives into the Spanish team?A:In our company,we have created a highly localised environment,where I am the only general manager of
116、Chinese origin.We understand the importance of effective communication and mutual understanding between our Chinese and Spanish teams.By focusing on shared interests and values rather than differences,we foster a harmonious working environment.Our colleagues are treated like family,promoting empathy
117、 and support.Fortunately,all our employees share a passion for motorcycles,which further strengthens the team.Q:What are the prospects for your company in the coming year in terms of investments,expansion,and strategic planning?A:The design and technical support for our products are carried out in I
118、taly and Spain,while production and industrialisation take place in China.Thanks to the well-developed ports in Spain,logistics are convenient,enabling efficient shipping from Ningbo to Barcelona.Additionally,our group has made significant investments in a new logistics facility located in the indus
119、trial area of Poliny,covering an area of 6,000 square metres.Currently under construction,this warehouse will enhance our operational capabilities.Looking ahead,once the facilities are established,we may even consider forming our own R&D team in Catalonia,further strengthening our presence in the re
120、gion.The insights gained from the Spanish market are instrumental in our R&D,design,and future technological advancements.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English co
121、mpany limited by guarantee.All rights reserved.19|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in Spain20|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in SpainEvaluation of the market size for distribution of products and/or servi
122、ces in SpainExcellentVery goodAdequateInadequate13%48%23%18%60%of companies surveyed rate“Market size”and“Access to the EU”as excellent or very good8Europe4.3Middle East4.5Other countries 6.8Latin America4.8AfricaAdditionally,the companies surveyed mentioned other regions such as the United Kingdom,
123、the United States,Australia,China,and Asia.These regions are seen as promising areas for business expansion.In the current geopolitical environment,companies are adopting internationalisation strategies with a greater focus on nearby markets or regions.Furthermore,Spains strategic position makes it
124、a highly valued point of access to other markets,particularly the EU.60%of respondents rated this aspect as excellent or very good.The ability to leverage Spains location for accessing the EU market,with 450 million consumers,is a significant advantage recognised by these companies.Regarding other r
125、egions of the world,“Access to Latin America”stands out with 38%of companies rating it as excellent or very good.However,Africa and the Middle East meet fewer expectations as viable markets for business development from Spain,as indicated by the executives surveyed.Based on these results,it can be c
126、oncluded that the“Size of the local market”and“Access to other markets”are highly relevant factors consistently identified as primary attractions for investing in Spain.Therefore,it is crucial to pay special attention to these aspects when considering business opportunities and investment strategies
127、 in the country.Access to other markets:average score out of 10 based on the number of responses received from each region 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English c
128、ompany limited by guarantee.All rights reserved.Business climate and company operations in SpainChinese FDI in Spain:Global Outlook 2023 21|Ignacio HerreroCEO,China Three Gorges(Europe)S.ASector:Clean energyQ:How do you assess the regulatory environment in Spain?And regarding the“screening”mechanism
129、 for foreign investments implemented at European level,how does it affect CTG in Spain?When assessing the regulatory environment in Spain,particularly for a company in the energy sector like CTG,we find that it is clearer than what we have observed in other countries.We have been established in Spai
130、n for some time now,and we have a good understanding of this framework.As a Chinese state-owned company acquiring a significant market share,we have been pioneers in navigating certain types of investments.Compared to other countries where Chinese companies have a lesser presence,Spain stands out wi
131、th a more developed and transparent regulatory framework.Moreover,access to institutions is relatively easier in Spain.The foreign investment legislation does impact us,particularly since a significant part of our growth strategy is based on inorganic expansion through active participation in merger
132、s and acquisitions.The framework is clear,and we have felt well-supported by the different administrations.Moreover,a new royal decree has been approved which reduces the FDI approval period from six to three months.Spain is of significant importance to CTG as it has proven to be a positive surprise
133、.In spite of the circumstances of the pandemic in 2020,we were granted authorisation to purchase 572 MW.Q:How do you assess the trend of digital transformation and innovation in Spain?A:Regarding digital transformation and innovation,CTG is still in its early stages,but we acknowledge the need to ac
134、celerate our efforts.Spain,being a pioneer in areas such as digital transformation,ranks relatively highly compared to other European countries.Government policies actively promote digitalisation,and there is a favourable ecosystem in place.Local and multinational companies have advanced levels of d
135、igitalisation and significant market penetration.It is essential for us to align ourselves with the momentum that the Spanish economy carries in this direction.If I had to rank Spain among EU countries in terms of digitalisation,I would confidently place it in the first quartile.Spain is a pioneer i
136、n fields such as digital transformation and occupies a fairly high position in relation to other countries in Europe.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company
137、 limited by guarantee.All rights reserved.21|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in Spain22|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in SpainBilateral relations at institutional level are keyBilateral relations at ins
138、titutional level play a crucial role for Chinese companies,and they closely monitor the development of these relations between governments,as well as the level of acceptance and welcome of Chinese investment in the destination country.In the case of Spain-China bilateral relations,an overwhelming ma
139、jority of the executives surveyed consider them to be“Very important”or“Important.”Only 11%of the executives express indifference or do not attach any importance to this issue.During interviews,many executives emphasised the absolute importance of maintaining smooth bilateral relations at institutio
140、nal level.They stressed the need to facilitate visits of authorities in both directions and include business delegations as part of these exchanges.This viewpoint is particularly prevalent among Chinese state-owned companies.These findings highlight the significance of robust institutional bilateral
141、 relations for Chinese companies.They value the promotion of dialogue and cooperation between governments to foster a conducive environment for investment and business activities.Maintaining positive relations and encouraging engagement at institutional level is considered essential by Chinese compa
142、nies operating in Spain.Rating of bilateral relations at institutional levelVery importantImportantIndifferentNot too important Insignificant1%6%36%4%53%2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Internation
143、al Limited,a private English company limited by guarantee.All rights reserved.Business climate and company operations in SpainChinese FDI in Spain:Global Outlook 2023 23|Javier LamasCEO,Aldesa GroupSector:InfrastructureQ:How do you assess the entry of Chinese capital into Aldesa Group for market exp
144、ansion?A:For Aldesa Group,it was a very positive step.CRCC,one of the biggest construction companies in the world,entered into our capital as an expert industrial partner.Not only can this company contribute to Aldesa with renewed financial strength,but it can also provide major synergies and opport
145、unities to collaborate and share our know-how in different markets where,together,we have become much stronger.Q:Are you familiar with ICEXs role in promoting direct investments and bilateral trade,both in Spain and abroad?A:I am well acquainted with ICEX and its mission.Whenever I have worked abroa
146、d and needed information,I have always relied on ICEXs Economic and Commercial Offices.Their reports are essential when you arrive in a new country with limited knowledge,and their staff provide a high-quality initial overview for newcomers.Q:Have you observed any cultural differences in working sty
147、les when integrating Chinese managers into Spanish teams?A:There are definitely significant cultural differences which require each member of the new combined teams to adapt.However,in my opinion,multi-cultural diversity is always beneficial and leads to positive results.The Chinese are renowned for
148、 their long-term perspective,which can provide valuable insight and contribute to strategic planning.They are attentive listeners and carefully process and analyse information before engaging in discussions to reach conclusions.Overall,by understanding and appreciating cultural differences,you are s
149、omehow enriched as a person and as a professional.Together,we are overcoming the challenging scenarios that markets have been facing in recent years,and I can see an Aldesa that is emerging from this experience stronger than ever.When arriving in an unfamiliar foreign country with limited knowledge,
150、ICEX reports,and staff provide essential insights and a high-quality initial overview for newcomers.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guara
151、ntee.All rights reserved.23|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in Spain24|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in SpainThe business climate ratings in Spain highlight the importance of quality of life,integration
152、 of expatriates,infrastructure,human capital,the regulatory environment,access to financing,and institutional support.Recognising these areas and making improvements where necessary is crucial to attracting and retaining foreign investment and ensuring the countrys competitiveness in the medium and
153、long term.“Quality of life”is highly valued by Chinese expatriates working in Spain,with an average score of 8.4 on a scale of 1 to 10.The countrys security,leisure opportunities,and cultural offerings make it an attractive destination for Chinese executives seeking a high quality of life.“Infrastru
154、cture”is the second-best rated area,meeting the expectations of Chinese companies in Spain,with a score of 7.9.Spains excellent network of international airports,high-speed railways,ports,and highways is essential for companies,particularly those engaged in export-oriented production.“Integration of
155、 expatriates”is the third highest rated area,with an average score of 7.7.The survey indicates that the integration of Chinese managers or employees into Spanish or multicultural work teams does not seem to pose significant problems,according to the opinions of the companies surveyed.“Logistics plat
156、forms”also receive positive ratings from the companies surveyed,with a score of 7.6.Together with“Infrastructure”,“Logistics platforms”are one of Spains strengths,which explains the high percentage of companies surveyed in the transport and logistics sector.The area of“Human capital”is importantto t
157、he executives surveyed and is among the highest-rated areas.The“Availability andquality of talent”receives an average score of 7.4.Attracting and retaining talent has become a challenge for companies,emphasising the need to enhance workforce capability and attract top talent.The“Regulatory environme
158、nt”is rated at an average of 7.1.The stability of the regulatory framework and the quality of regulationsare crucial factors in attracting and retaining foreign investment,as indicated by 71%of the executives surveyed,who rate it above 7.“Access to financing”is a lower rated area,with an average sco
159、re of 6.8.Improvements are needed,particularly in the information about public subsidies.Given the current higher Euribor economic climate in Europe,it becomes increasingly important for public entities to provide more support in terms of financing.According to the survey results,potential for impro
160、vement is identified in the area of“Institutional support”.Nonetheless,the executives interviewed generally hold a positive opinion regarding the institutional support provided by the Spanish trade administration,which includes entities such as ICEX,as well as other agencies operating under the Mini
161、stry of Industry,Trade,and Tourism.They acknowledge the positive role in facilitating trade and investment activities.These organisations are recognised for their efforts in promoting international business opportunities,providing market intelligence,facilitating networking opportunities,and helping
162、 to navigate foreign markets.In recent years,ICEX-Invest in Spain has made efforts to provide more personalised support to Chinese investors,including the establishment of a“China Desk”in 2016 and the availability of documentation,newsletters,and a Chinese-language website.Areas related to people an
163、d infrastructure are the highest rated 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Business climate and company operati
164、ons in SpainChinese FDI in Spain:Global Outlook 2023 25|Tax incentives:A significant number of Chinese companies established in Spain,specifically more than 30%,have reported that they apply and receive state incentives for training and employment in Spain.Additionally,15%of the executives surveyed
165、applied for both R&D incentives and other central government incentives specific to industrial sectors in Spain.Less well known are the other region-specific investment incentives,government incentives for innovative small and medium-sized enterprises,preferential financing from the Instituto de Crd
166、ito Oficial(ICO),internationalisation incentives,and EU aid.For that reason,Chinese companies believe that the Spanish authorities could provide more information on specific tax incentives and support programmes in order to attract more foreign investment.They seek incentives that align with their b
167、usiness objectives and encourage long-term commitment to the Spanish market.Innovation:The fact that 60%of Chinese companies surveyed rated the environment for innovation development in Spain as very good could be seen as a positive sign.A high rating from a significant number of companies suggests
168、that these companies perceive Spain as a favourable place for innovation and business growth.It could indicate that Spain provides conducive conditions,such as supportive policies,research and development opportunities,access to talent,infrastructure,and a stable business environment.Digitalisation:
169、Digital transformation is crucial in todays fast-paced,technology-driven business landscape.Advances in digital technologies can offer companies numerous benefits,such as greater efficiency,improved customer experience,increased market reach,and enhanced competitiveness.Around 25%of Chinese-owned co
170、mpanies surveyed have rated their companys degree of progress in digital adoption as adequate.These Chinese companies perceive that they are taking some steps in digital transformation but acknowledge that there is still work to be done.It could imply that they have started adopting digital technolo
171、gies and processes but have not fully optimised their digital capabilities or reached the level of digital maturity they aspire to.Tax incentive support,digital transformation,and ESG issues are also high on the agendaBusiness climate ratings by area in Spain0213456787,97,77,67,47,16,8Quality of lif
172、eInfrastructureIntegration of expatriates Logistics platforms Availability and quality of talent Regulatory environment Access to financing8,4 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited
173、,a private English company limited by guarantee.All rights reserved.25|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in Spain26|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in SpainCompanies degree of progress in Spain in terms of
174、digital adaptation19%52%25%4%ExcellentVery goodAdequateInadequateMoreover,according to the survey results,71%of Chinese company executives rate their degree of progress in Spain in terms of digital adaptation as very good or excellent.This indicates that most of these executives believe that their c
175、ompanies have made significant strides in terms of adopting digital technologies in the Spanish market.During the interviews,they also mentioned the development of a comprehensive digital strategy aligned with their business goals,focusing on areas such as digital marketing,e-commerce,data analytics
176、,and process automation.Most Chinese multinationals have integrated sustainability and ESG into their strategic and operating model at group level.The executives surveyed rated this very positively since they are aware of the importance of their implementation in their day-to-day management.The fina
177、ncial services sector is one of the most demanding in terms of ESG compliance,as well as other sectors such as energy,infrastructure,healthcare,industry,and automotive,etc.81%of Chinese companies rate their progress in integrating sustainability and ESG into their strategic and operating model as ve
178、ry good.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Business climate and company operations in SpainChinese FDI in Spai
179、n:Global Outlook 2023 27|Eduardo BavieraCEO,Clnica BavieraSector:HealthcareAs a publicly listed company,our company places emphasis on equality,transparency,and ESG principles.Q:Do you consider the business environment in Spain to be favourable at the moment?How would you assess the level of satisfa
180、ction and priority in your companys business development?A:In general,the macroeconomic indicators are positive,although there are some uncertainties.Spains inflation situation is better than the European average,and the healthcare sector has witnessed a positive impact post-Covid,performing better
181、than in 2019.Since being acquired by a Chinese group,Clnica Baviera has performed well with organic growth.In recent years,the company has not only increased its business volume but also focused on improving internal operational efficiency through effective staff management,training,adoption of tele
182、medicine technology,and ERP renewal,among other initiatives.Q:Have you noticed any cultural differences in the working styles?What are the main strengths and difficulties you have encountered?A:I have had the opportunity to travel to China 7-8 times,which has given me a better understanding of Chine
183、se management practices.The knowledge I gained from Aier Eye Hospital Group has positively influenced our company.Being part of the Aier Group,we share similarities in corporate culture and experience low employee turnover.However,one challenge we face is that the decision-making process may be less
184、 structured in China,with a tendency to prioritise immediate actions.Therefore,having a robust reporting system in place is crucial for both our organisation and the parent company,especially considering that Clnica Baviera is publicly listed,and its business model is easily understandable.Q:In term
185、s of sustainability,what impact does it have on Spanish companies,including yours?A:Our company is actively engaged in socially responsible projects,such as the non-profit Ethiopia Clinic.As a listed company,Clnica Baviera places emphasis on equality,transparency,and ESG principles.Our company has a
186、 minimal carbon footprint,as we minimise the use of disposable items and prioritise sustainable practices.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by
187、 guarantee.All rights reserved.27|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in Spain28|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in SpainNotably,when executives are asked which ESG or sustainability area will have the greate
188、st impact on their corporate agendas,more than half highlight energy efficiency as well as health and safety.The latter option has the highest response rate,indicating that business leaders are aware that social responsibility should generate synergies for both the financial performance of the compa
189、ny and the well-being of employees.The success of any ESG strategy largely depends on the commitment of all employees to the companys purpose and objectives in this area.In fact,integrating ESG factors into the corporate governance system and responsible supply chain is also considered important by
190、a third of the executives surveyed.However,waste management,support for vulnerable groups and social assistance and renumeration are seen as less advanced by the executives surveyed.This indicates that companies will soon be working on such ESG drivers for their organisations.ESG and sustainability
191、areas on which Chinese companies in Spain have placed the greatest focus58%Energy efficiency6%Remuneration58%Health and safety33%Corporate governance system28%Responsible supply chain23%Gender equality and diversity21%Training19%Circular economy11%Support for vulnerable groups and social assistance1
192、5%Waste management 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Business climate and company operations in SpainChinese
193、FDI in Spain:Global Outlook 2023 29|Lan ChengHR Director EMEA Trina TrackerSector:Renewable EnergyBridging cultural differences plays a crucial role in the management and strategy of a Chinese multinational company in Spain.Q:What is Trina Groups business strategy in Spain following the acquisition
194、of a local Spanish entity?How is the business environment affecting day-to-day operations?A:Trina Group is an international company that operates in the solar industry,specialising in solar panels,system projects,mounting systems,and energy storage.In Spain,the company primarily focuses on the distr
195、ibution of solar panels,trackers,mounting systems,and projects.In 2020,Trina Solar acquired Nclave,a company renowned for its expertise in mounting systems.Over the past few years,the Spanish subsidiary of Trina Group has experienced remarkable sales of solar panels,while Trina Tracker,specifically
196、the mounting system division under Nclave,is implementing a growth strategy and making the necessary adjustments to further expand its market presence.Moreover,Spain offers a promising market size for Trina Group,supported by the strong energy strategy promoted by the European Union.This presents a
197、favourable business environment for the companys operations in the country.By leveraging digital transformation,the company has also enhanced operational efficiency,driving sustainable growth in Europe and Latin America.Q:Working in a multicultural team that includes both Chinese and Spanish executi
198、ves can be challenging.As HR director,have you perceived any cultural differences in the way people work?A:Bridging cultural differences plays a crucial role in the management and strategy of a Chinese multinational company in Spain.Chinese culture values indirect communication and hierarchical stru
199、ctures,with top-down decision-making from the headquarters.In contrast,Spanish and other western cultures often prioritise consultation,collaboration,and consensus building among team members when seeking solutions to problems.Balancing these different approaches is key to maintaining high levels of
200、 employee engagement and ensuring that local perspectives are considered when making decisions.By incorporating specific training and similar considerations into Trina Groups strategy,our company has enhanced communication and fostered teamwork,ultimately leading to long-term success.2023 KPMG,S.A.,
201、a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.29|Chinese FDI in Spain:Global Outlook 2023Business climate and company operations in Spai
202、nEconomic,sectorial and business perspective30|Chinese FDI in Spain:Global Outlook 202303Economic,sectorial and business perspectiveSpain has a diverse and resilient economy.It is the fourth largest economy in the Eurozone,and it offers stability,favourable economic growth,and a competitive business
203、 environment.The country has reinforced its position to attract foreign investment,improve competitiveness,and promote entrepreneurship.Various sectors in Spain present attractive opportunities for Chinese-owned companies.Key sectors include infrastructure,renewable energy,tourism and hospitality,as
204、 well as manufacturing and automotive.In this section,respondents forecasts regarding the Spanish economy are quite consistent with their expectations for the current and future performance of their sectors.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of ind
205、ependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Economic,sectorial and business perspectiveChinese FDI in Spain:Global Outlook 2023 31|More than three out of four respondents(78%)state that their expectations for eco
206、nomic growth in Spain over the next 12 months are positive.More than 90%of the executives surveyed consider that conditions in the sector in which their company operates in Spainwill be the same as they are now,or better or much better over the next 12 months.This optimism extends to their forecasts
207、 for revenue,investment performance,and employment,although they are more cautious than in the previous case due to the current climate of uncertainty.Expected economic growth in Spain over the next 12 months 3%growth0-3%growthIt will remain the same0-3%decreaseExpectations regarding sector conditio
208、ns in Spain over the next 12 monthsMuch betterBetterSameWorseExpected change in turnover of Chinese companies in Spain in 2023 5%growth0-5%growth0-5%decrease 5%decreaseIt will remain the sameExpected change in investment by Chinese companies in Spain in 2023 5%growth0-5%growth0-5%decrease 5%decrease
209、It will remain the same16%62%19%3%5%41%51%3%45%28%23%1%3%31%15%50%1%3%2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.31|Ch
210、inese FDI in Spain:Global Outlook 2023Economic,sectorial and business perspective32|Chinese FDI in Spain:Global Outlook 2023Economic,sectorial and business perspectiveExpected changes in your companys workforce in Spain in 2023 5%growth0-5%growth0-5%decrease 5%decreaseIt will remain the same59%of Ch
211、inese companies expect their international presence to grow in terms of investment over the next 12 months,which indicates a positive outlook for their expansion and investment plans.This suggests that most Chinese companies operating in Spain are planning to increase their investment and expand the
212、ir international presence within the next year.Expanding their international presence can include activities such as opening new branches,increasing production capacity,entering new markets,or investing in research and development.This level of investment indicates that these companies see growth op
213、portunities,market potential,and a favourable business climate in Spain.On the other hand,almost 50%of Chinese companies expect their international presence to evolve positively in terms of exports over the next 12 months.This could mean stability and confidence in their existing operations and the
214、potential opportunity to explore new markets.65%European Union14%Middle East13%Other(Asia&USA)25%Latam20%AfricaChinese companies plan to increase their international presence over the next 12 months 21%36%39%1%3%2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization o
215、f independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Economic,sectorial and business perspectiveChinese FDI in Spain:Global Outlook 2023 33|Shuli ShenGeneral Manager,SQ Insertec EuropeSector:Foundry materialWe are wh
216、oleheartedly committed to implementing sustainable practices and actively contributing to Spains ESG goals.Q:As the general manager of a joint venture representing the Chinese shareholder,are you satisfied with the general business environment in Spain?How would you assess the overall situation of y
217、our company since its establishment in 2017?A:The business environment in Spain is favourable and characterised by a people-oriented approach.Spanish culture is known for its openness and friendliness.If a company operates within the legal framework and complies with local regulations,there are ampl
218、e opportunities for organic growth.Our joint venture with Insertec was established in the second half of 2017,and the factory began producing foundry materials in 2019.Since then,our business activities have experienced rapid growth.Establishing a production base in Spain was a crucial step in SQ Gr
219、oups internationalisation strategy.Thanks to our valued partner,the establishment of localised production has greatly enhanced our connections and collaborations with customers.Moreover,we have strategic plans to invest in a new resin production plant,further consolidating our presence in the Europe
220、an market.Resin is one of our flagship products,and one in which we have been recognised for our technological advances and impressive production capacity.We are highly motivated to maintain our strong performance in Spain and strive to become a leading company in the region.Q:How do you assess tech
221、nological innovation and ESG in Spain?What is your approach to these issues?A:Spain has demonstrated commendable technological innovation and a strong commitment to ESG principles.As a leading biomass refining company,SQ Group has played a key role in driving sustainable progress in Spain.Through ou
222、r“SQ Method,”which uses agricultural crop straw,we have achieved remarkable advances in green technology.This environmentally-friendly approach maximises the efficient use of straw,resulting in the production of a wide range of high-quality products.Furthermore,our technology generates biochar,a val
223、uable material with applications as an anode(negative electrode)in lithium batteries.At SQ Group,our approach to sustainability revolves around leveraging green technologies,promoting efficient resource use,and contributing to the development of an environmentally-friendly industry.We are wholeheart
224、edly committed to implementing sustainable practices and actively contributing to Spains ESG goals.Overall,many Chinese companies are planning to build up their international presence by increasing their investment and trade in the European Union,Latin America,and Africa,evidencing their confidence
225、in the business growth they are pursuing.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.33|Chinese FDI in Spain:Global Out
226、look 2023Economic,sectorial and business perspective34|Chinese FDI in Spain:Global Outlook 2023Economic,sectorial and business perspectiveTo achieve continuous improvement in their operations,Chinese companies in Spain can implement several strategies and practices.Some of the approaches they can co
227、nsider include automation technologies,data analytics,training and development,employee feedback and engagement,and cross-functional collaboration.73%of respondents highlight continuous improvement in their companys operationsApproximately 54%of respondents consider digital transformation to be cruc
228、ial for their businesses in Spain over the next twelve months,recognising the need to leverage technology to improve efficiency and competitiveness.Alliances,joint ventures,or other types of agreements are the third-ranked factor to improve business performance.Some 36%of respondents believe that fo
229、rming strategic alliances or partnerships can enhance their business performance in the Spanish market.Due to the recent rise in the Euribor in the financial market,around 28%of respondents from Chinese companies identify bank financing or other soft financial instruments as significant for obtainin
230、g additional liquidity to support their operations and growth in Spain.Furthermore,24%of companies surveyed prioritise enhancement of their compliance practices to ensure adherence to regulations and ethical business standards.At the same time,ESG considerations are recognised by 21%of respondents a
231、s important factors in their business strategies in the near future,reflecting their commitment to sustainable practices.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English com
232、pany limited by guarantee.All rights reserved.Economic,sectorial and business perspectiveChinese FDI in Spain:Global Outlook 2023 35|Luis VillarroyaChairman,Eptisa Sector:EngineeringIn the infrastructure sector,the Spanish government has excelled by complying with European regulations that prioritis
233、e quality over price.Q:Regarding bilateral institutional relations between China and Spain,do you consider them a relevant factor for developing your business in Spain?A:In China,institutions play a vital role in daily life,and maintaining deep and meaningful bilateral institutional relations is cru
234、cial.If the Spanish side expresses its commitment to these relations,the Chinese side will always respond positively.Furthermore,trips undertaken by Spanish officials to China and vice versa are of immense importance,having been assessed as being of the utmost utility.Q:How do you assess the integra
235、tion of Chinese managers into the Spanish team?Have you noticed any cultural differences in the way they work?A:In general,Chinese managers value the quality of life in Spain highly and feel at home here.They appreciate the clean water and air,as well as the proximity to other European cultures.Inte
236、restingly,there is remarkable affinity between the Chinese and Spanish ways of life.In fact,during working dinners,there seem to be more similarities between Chinese and Spanish people than between Spaniards and Germans.At Eptisa,we embrace multiculturalism as part of our make-up,so we have not enco
237、untered any integration problems.Q:What are your expectations for the Spanish economy,and what is your companys outlook for the coming year in terms of investments?A:Spain represents a significant portion,between 15%and 20%,of our companys revenues,so the Spanish economy is very important to us.In t
238、he infrastructure sector,the Spanish government has done an excellent job by complying with European regulations that prioritise quality over price.As regards investments,our focus is on human capital.There is currently a global crisis brought about by the scarcity of engineers,which is why Eptisa a
239、ims to invest heavily in attracting and retaining talent.Specifically,we plan to allocate substantial resources to attracting experts on energy who have a unique perspective on decarbonisation and sustainability.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization o
240、f independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.35|Chinese FDI in Spain:Global Outlook 2023Economic,sectorial and business perspective36|Chinese FDI in Spain:Global Outlook 2023Economic,sectorial and business pe
241、rspectiveImportant measures that the companies surveyed are considering over the next 12 monthsRating of the handling of the following issues on a scale of 0 to 10 over the next 12 months021345678Continuous improvement in the companys operations73%Digital transformation54%Alliances,joint ventures,or
242、 other types of agreements to improve business performance36%Bank financing or other financial instruments to obtain greater liquidity28%Improved compliance24%Sustainable transformation and ESG 21%Strategic acquisitions or buyouts to increase business volume20%Applying for public subsidies9%Divestme
243、nts of non-core businesses and/or non-strategic subsidiaries6%Other4%Insufficient 5Sufficient 5-6Outstanding 9-10Notable 7-8Good corporate governance53%28%18%3%Gender diversity in the workforce54%30%14%3%Specific sustainability and ESG objectives50%29%19%3%Global market presence44%35%16%5%2023 KPMG,
244、S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Economic,sectorial and business perspective37|Chinese FDI in Spain:Global Outlook 202
245、3 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.38|Chinese FDI in Spain:Global Outlook 2023Final wordsOverall,both the qu
246、estionnaire responses and the personal interviews conducted,clearly indicate that companies regard Spain as a favourable location for their investments and maintain a positive outlook for their business in the medium term.Despite a challenging global context,companies harbour expectations of growth
247、and are optimistic about their operations in Spain.Despite an inflationary environment and restrictive monetary policy,Chinese companies established in Spain have a positive view of economic growth there compared to the rest of Europe.Their business strategies pursue organic growth in the domestic m
248、arket and international expansion,especially within the European Union.0105Chinese companies prioritise continuous improvement of operations as the foremost aspect for conducting their business in Spain over the next twelve months.This underscores their emphasis on enhancing operational efficiency,p
249、roductivity,and overall performance to achieve success in the Spanish market.04The areas most highly rated by the executives surveyed are“Quality of life”and“Integration of expatriates”,two issues related to the particular idiosyncrasies of Spaniards.“Infrastructure”,“Logistics platforms”,“Human cap
250、ital”and“Regulatory framework”also receive good ratings.Therefore,they could be considered strengths of our country.Final words 2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private Engl
251、ish company limited by guarantee.All rights reserved.Final wordsChinese FDI in Spain:Global Outlook 2023 39|02The stability and quality of the“regulatory environment”are highly appreciated by Chinese investors and considered by some interviewees to be superior to those of other European countries.On
252、 the other hand,“institutional support”is still an area where there is ample room for improvement.For this purpose,central and regional Spanish Investment Promotion Agencies(IPAs)are increasingly offering personalized support to Chinese investors.06The executives interviewed are increasingly engaged
253、 in nurturing their professionals to achieve sustainable development.By focusing on shared interests and values rather than differences,executives from both Spanish and Chinese backgrounds highlight the importance of effective cross-cultural management and talent retention in driving business succes
254、s.03Bilateral institutional relations play a pivotal role for executives in encouraging Chinese investment in Spain.Undoubtedly,maintaining open and cordial institutional relations between China and Spain will enhance bilateral trade and attract more Chinese investment to Spain.07The environment fav
255、ours the promotion of digital transformation,innovation,and ESG development and implementation for Chinese companies in Spain.Executives also positively rate their companies progress in integrating digital adoption and ESG considerations into their strategic and operating models.2023 KPMG,S.A.,a Spa
256、nish corporation and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.39|Chinese FDI in Spain:Global Outlook 2023Final wordsAuthors and key contactsFor further infor
257、mation,contact:The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date it
258、 is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.2023 KPMG,S.A.,a Spanish corporation and a member firm of the KPMG global organization of independ
259、ent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.KPMG and the KPMG logo are registered trademarks of KPMG International Limited,a private English company limited by guarantee.2023 ICEX Espaa Exportacin e Inversiones,E.P.E.
260、,with Tax Identification Number Q2891001F,is a public corporation ascribed to the Ministry of Industry,Trade and Tourism through the State Secretariat for Trade,established and governed by Royal Decree-Act 4/2011,dated 8 April,and with its headquarters at Paseo de la Castellana 278,28046 Madrid(Spai
261、n).All rights reserved.ICEX and the ICEX logos and brands are subject to intellectual and industrial property rights owned by ICEX,protected by Spanish and EU legislation jointly in the realm of intellectual and industrial property rights.Elisa Garca GrandeExecutive DirectorICEX-Invest in SpainT:+34
262、 91 50 35 810E:investinspainicex.esDavid HhnPartner,Head of China PracticeKPMG SpainT:+34 91 45 63 477E:dhohnkpmg.esAlicia Tamames Prieto-CastroChina Desk ICEX-Invest in SpainT:+34 91 50 35 808E:investinspainicex.esEstela LiSenior Manager,China PracticeDeal AdvisoryKPMG SpainT:+34 66 72 35 280E:liyakpmg.esSantiago Pantn LageInformation Deputy DirectorICEX-Invest in SpainT:+34 91 50 35 810E:investinspainicex.esLisa LiPartner,Global China PracticeDeal AdvisoryKPMG ChinaT:+86 10 8508 5885E:kpmg.es