The Diplomat in Spain

Urbaser was one of the companies bought with Chinese capital in 2016. 

The Diplomat. 31/07/2018

China invested in Europe 41,150 million dollars in 2016, 31% more than the previous year, according to the report “Trends for Chinese investment in Europe” presented by ESADE. Spain was the main destination of Chinese investors in Southern Europe.

The report, written by Professor Ivana Casaburi and now in its fourth edition, reflects the greater role of China in the global economy because of the protectionist policies of Donald Trump, the Brexit and the rise of European anti-globalization parties. It also adds that European technology companies have become one of the main destinations for Chinese investments.

By countries, Germany and the United Kingdom, with 27.4% and 25.5% respectively, were the countries that received the most investment from China in 2016.

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Spain received 1,880 million euros from Chinese investors, according to ESADE’s report

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Spain, on the other hand, was the main destination in Southern Europe in 2016 with an investment of 1,880 million euros as a consequence of the acquisition of the service company Urbaser. In the first half of 2017, in addition, Spain was the country where the largest operation was announced: the entry of Orient Hontai Capital in Imagina Media Audiovisual, which became effective in February of this year.

The report warns, finally, of a possible downward trend in China’s investments in Europe caused mainly by two reasons: the Chinese government’s own restrictions to combat public debt and, on the other hand, stricter EU’s legislation regarding large operations, especially in the technology sector.