According to the latest news from Visas Consulting Group: China's status in the world is becoming increasingly evident due to the investments made by its people. This article aims to provide an overview of Chinese investment in Portugal over the past decade.
2011, at the end of the year, China Three Gorges Corporation acquired approximately 21.35% of the shares of the Portuguese power company EDP. This acquisition was the result of a long-term privatization process, following comparisons with companies such as Electrobras and E.ON. In February 2012, State Grid Corporation of China purchased a quarter of the shares of the Portuguese energy network (REN). In January of the same year, Fosun Group acquired 80% of the capital of Caixa Seguros. This transaction accounted for approximately 30% of the market value of the Portuguese national insurance market. In March 2013, Beijing Enterprises Water Group acquired the water utility Veolia, which primarily provides water to the Portuguese regions of Valongo, Paredes, Mafra and Ourém. The investment amount reached 95 million euros. During the same period, a Chinese company purchased a 35% stake in the EDC Alentejo Marble Company for 24 million euros, aiming to utilize waste from its quarries to produce marble slurry for construction. 80% of the products will be exported to China.
All these investment projects are part of China's foreign soft power strategy; in other words, China is not only developing foreign investment but also increasing its influence through mutual cooperation with trading partners. According to Huang Songfu, the Chinese Ambassador to Portugal, the latter trade is "an investment project that unites the two countries." These investments in Portuguese companies have also led Chinese banks to enter Portugal. In February 2012, the Industrial and Commercial Bank of China (ICBC) opened a branch in Lisbon, following the Bank of China. Other trade cooperation will follow. Beijing Enterprises Water Group is interested in acquiring the company Águas de Portugal. Meanwhile, the London Cinema, located in Lisbon and rich in local cultural style, which was closed by the company Socorama in 2013, may give way to a Chinese retail store this year. Between 2009 and 2010, China purchased Portuguese public debt, demonstrating its confidence in the recovery of the Portuguese economy.
Economists, analysts, scholars, and the public have different perspectives on China's diverse investment activities. Chinese investment can be seen as a form of assistance to the Portuguese economic recovery, or as normal "trade activity." That is to say, this major Eastern power is attempting to get closer to European countries and is willing to align with the European Union to break away from its current over-reliance on the North American dollar market. Portugal can serve as a gateway for China to enter other Portuguese-speaking markets; for example, in Brazil and some African countries, the participation of the Chinese economy is already unquestionable.
China's interest in investing in Portugal is also reflected in its favor for the Golden Residence Permit, which is specially approved by the Portuguese government. The Golden Residence Permit (i.e., Golden Residence Card) is a special visa granted for permanent residency in Portuguese territory, aimed at attracting investment. Foreign investors who purchase Portuguese real estate for at least 500,000 euros, create at least 10 jobs in Portugal, or complete a bank deposit in Portugal exceeding 1 million euros can directly obtain residency to facilitate their investment activities, and subsequently obtain European Union or Schengen citizenship. As of the end of July 2014, according to the latest data released by the Portuguese Immigration and Borders Service (SEF), 1,101 Chinese investors have been approved for the Portuguese Golden Residence Permit. They mainly obtained this visa by investing in Portuguese real estate. For example, José Avillez, the owner of the one-Michelin-starred restaurant Belcanto in the Chiado district of Lisbon, has gained two investors from China. These two Chinese investors obtained Portuguese Golden Visas while investing in the restaurant. Whether driven by pure profit or as a manifestation of China's "soft power" strategy, compared to China's investment momentum focused on the entire world, investment in Portugal is only a part of it; however, there is indeed a close connection between China and Portugal.
Source: Pu Hua Bao
http://www.puhuabao.com/portal/qiaojie/ptqiaoxun/3903-2014-08-06-14-34-41
Visas Consulting Group Editor
