Spain-China Economic Relations

Spain-China economic relations

In this article I would talk about the evolution Sino-Spanish economic relations. After the reform, the Spanish economic presence in China was build up over the years.

Sino-Spanish relations began in 1973 after both countries were still reeling from the aftermath of civil wars. Since the early eighties, Spain made significant and continuously strengthenedefforts for develop its economic and commercial presence in China. From the numerous of high level official visits to the high volume of aid (in particular, the credit lines offered by the Development Aid Fund “Fondo de Ayuda al Desarrollo” or FAD), there has been a clear line of action, as the PSOE government as the People’s Party, that has placed China as a one of the primary objective of theeconomic Spanish trade’s policy.

Companies also have been taking an increasing interest in their presence in China. During the 1980s and 1990s, their presence wasn’t large in terms of number, but very active. Almost three decades have passed since Spain starts its economic presence in China.

In the late of the 70s “Incoteco” open an office in Beijing. Is the first Spanish company that opens anoffice in China. Incoteco carried out a significant work trading in products that at that time were the center of the bilateral trade: raw materials, chemical, pharmaceuticals…
Incoteco worked as agent of large Spanish firms that at that time wanted to approach to China. Indeed, Incoteco has been the pioneer in the economic and commercial relations between Spain and China.

The first companywhich undertook a substantial investment was ALSA. In 1984 Alsa opened a join taxi enterprise in Shenzhen, Guangdong province. After, companies like Agrolimen and Nutrexpa also made considerable investments.

In 1985 Felipe González then president of the provincial government made an official visit, he was accompanied by a major business delegation, in order to explore commercial opportunities.After, all this projects failed. During the visit, was signed the first draft of Spanish machinery and technology executed in China with funding from FAD, a citrus processing plant in Zhejiang province (Emex). Nevertheless, the visit had important media coverage in Spain.

In 1987 was created a new credit line for financing small and medium-size projects that took place in the Spanish-ChineseJoint Commission meeting. It has been an efficient and flexible tool for support machinery trade operations of SME.

In 1988 the engineering firm Técnicas Reunidas sign an ambitious project in Liaoning province (Fushun petrochemical plant 抚顺石油化工公司).

In 1989 it’s signed the first financial protocol amounting to 450 million dollars. The financial protocols have made possible for Spanish SME toenter in China.
After the Tiananmen massacre in Beijing, Spain adopt and defend a policy of restraint, opposed to tough sanctions against China that would result in isolate China.

In 1993, the Spanish Council of Chambers of Commerce sets up the Spanish-Chinese Enterprise Committee, as a business platform aimed at promoting businesses. The Spanish-Chinese Enterprise Committee organizes a lotof activities like business meetings, seminars. It had been undoubtedly one of the principal motor for stimulate the business relationship between China and Spain.
The same year, it signed the of the contract the power station of Yahekou 河南鸭河口电厂.
The industry and technology fair in 1994 let Spanish to promote our technology.

Another example would be the work of the Spanish Institute forForeign Trade. During the last couple of years there has been a clear increase of activities directed towards Asia, for example the investment forum organized for Spanish companies in Guangdong 2001, followed in 2002 by a forum in Beijing.

One good example of progress in action is the creation of the Casa Asia, a new institution established in Barcelona and financed by the Spanish Foreign...