The changing Chinese economic model: an opportunity for Spanish companies

The Elcano Royal Institute is a think-tank for international and strategic studies that analyses world events and trends from a Spanish, European and global perspective.

The Analyses of the Elcano Royal Institute (ARI)are short pieces - of around 3,000 words - on aspects of current international affairs considered to be of relevance to Spain, its foreign policy or its security. In broad terms ARIs are intended to have a predictive bearing on events.Spanish companies have gradually engaged China over the years and now boast a notable presence in this Asian country. Nevertheless, despite that, Spain’s modest investment presence in China does not yet reflect its full investor potential. Currently, the Chinese economic growth model is undergoing profound transformation, characterised by greater economic opening, further extension of the market and a boom in private consumption. Such change opens up new opportunities for Spanish companies to invest and position themselves in the Chinese market. Whether or not Spanish companies can take advantage of this opportunity to increase their presence in China will depend on multiple factors, chief among them the role of public policies in helping the private sector overcome current obstacles.