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Thus, they include a general overview of the country (political situation and stability, demographics, income variables, labor force, administrative organization), its economic framework, import/export situation, industry, trade, industrial property, intellectual property and its protection, taxation, labor legislation, financing conditions, bilateral agreements with Spain, and also general information such as useful data, establishment costs, living conditions, and various appendices with statistical data and information about the country.
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The Chinese Community in Spain: A Success Story
The Chinese community in Spain is the fourth-largest group of Chinese residents in Europe and one of the most widespread across the country. Most Chinese immigrants to Europe, particularly Spain and Italy, came from the cities of Wenzhou and, predominantly, Qingtian, both located in Zhejiang Province in southeastern China, near Taiwan. However, migration patterns have shifted: “Qingtian remains the main origin city for those living here, but fewer people are coming from there now because essentially everyone who wanted to leave has already done so,” explains Joaquín Beltrán Antolín, a professor at the Autonomous University of Barcelona.
According to Beltrán, this migration has always been interclass, with both wealthy and disadvantaged individuals arriving. “In this region, professional success was achieved by owning a business abroad.” Over the past 20 years, conditions in Qingtian and neighboring Wenzhou have changed significantly. China’s development now offers opportunities that make economic migration less appealing than before. “It’s now possible to do business and earn even more money there,” Beltrán notes.
Currently, approximately 230,000 people of Chinese origin live in Spain. In 2022, there were 223,999 according to the National Statistics Institute. Recent data suggests a slight decline in Chinese emigration to Spain. Experts attribute this to the economic crisis affecting the Chinese community, leading to the closure of several businesses, especially grocery stores. Combined with improvements and emerging business opportunities in China, this has resulted in a migratory trend where many Chinese are returning to their homeland.
For a long time, Spain has served as a frontier territory for Chinese settlement—a land full of opportunities for prosperity that was bolstered by Spain’s entry into the European Economic Community (now the European Union) in 1986, which brought economic growth and an overall rise in living standards.
Historical Background
A digital search reveals traces of ancient Chinese migration to Spain. The earliest recorded arrivals date back to the late 16th century. Bernardino de Escalante mentioned “the Chinese themselves who came to Spain” in his Discourse on Navigation (1577). Similarly, Juan González de Mendoza noted that three Chinese merchants arrived in Mexico in 1585 and continued on to Spain and other distant kingdoms.
A legal case from the 1570s involved two Chinese men from Seville: Esteban Cabrera (a free man) and Diego Indio (a slave), who sought freedom from his owner Juan de Morales. Diego recounted being taken as a child slave from Mexico to Nicaragua, then Peru, Panama, and finally Spain via Lisbon. Esteban testified that he knew Diego as a boy in Limpoa (Portuguese for Ningbo), falsely claiming it was part of Spanish colonial territories—a likely ploy to help Diego gain his freedom by exploiting Spanish ignorance about Asian geopolitics.
Asian slaves transported from Spanish-controlled Philippines via Manila-Acapulco galleons were referred to as “Chino,” though they hailed from diverse origins—Japan, Malaya, Java, India, Bengal—and were often acquired through Portuguese trade networks. Some aristocrats temporarily brought these slaves to Spain from Mexico as status symbols.
In modern times, official records show that early Chinese arrivals included ex-convicts from Cuba who settled in Ceuta and Melilla after serving their sentences around 1876. Their numbers were small and their presence eventually faded.
The second phase of migration involved peddlers from southern Zhejiang Province who traveled across Europe between Moscow and Lisbon during the 1920s-1930s. This period also saw circuses based in Madrid and participation by heterogeneous groups of Chinese individuals in International Brigades during the Spanish Civil War.
The third phase coincided with diplomatic relations with Taiwan (1954-1973), leading to an influx of students who later settled permanently.
Integration Challenges
A study by professors Jin Yangmin (University of Salamanca) and Eloy González-Pelón (University of Cantabria) highlights that upon arrival in Spain, immigrants prioritize settling down. Broader ethnic networks often provide initial employment opportunities due to language barriers and limited qualifications among newcomers. Such jobs—often within workshops, restaurants, or warehouses—are typically associated with housing arrangements but may involve exploitation through unpaid social security contributions or excessively long working hours.
Over time, some immigrants escape these ethnic networks through family support as they discover better-paying jobs and labor rights previously unknown to them.
Distribution and Activity
The Chinese population or those of Chinese origin are spread across Spain, although the largest concentration is in Madrid, followed by Catalonia, the Valencian Community, and Andalusia.
Chinese residents in Spain and their descendants are reputed to be hardworking, a fact supported by data. According to Social Security statistics, more than half are actively contributing, and half of these do so as self-employed individuals, primarily operating businesses in food retail, textiles, bazaars, and various service industries. Studies show that Chinese entrepreneurs often open small grocery and textile shops. Gradually, nut stores have given way to fashion outlets and bazaar establishments. This shift is largely attributed to the importation of goods from China, which reduces costs and facilitates the establishment of businesses in Spain. The majority of self-employed Chinese workers in Spain are between 20 and 45 years old.
However, another significant aspect of the business activities of the Chinese community in Spain involves real estate investments and high-tech companies. The community’s business interests have long surpassed the level of small convenience stores. Experts note that new Chinese entrepreneurs are increasingly focusing on technology-driven ventures as well as financial and real estate investments.
Additionally, the Law to Support Entrepreneurs—commonly known as the Entrepreneurs Law—approved by the Spanish government grants residence permits of one to two years (renewable with proof of additional investments) to foreigners who invest over half a million euros in real estate. This has been a major incentive for Chinese investments in Spain.
Furthermore, sources within the hospitality sector confirm growing interest among wealthy Chinese magnates in acquiring properties on the islands and in Madrid in recent months.
In particular, within the telecommunications sector, the Asian giant is gaining remarkable strength in Spain through the arrival of companies like Huawei and Lenovo.
According to KPMG, Spain’s economic and business environment continues to attract investment from Chinese companies. In fact, nearly 60% of Chinese firms operating in Spain plan to invest and expand their international business within the next 12 months, as revealed by ICEX-Invest in Spain’s report “Chinese FDI in Spain: Global Outlook 2023”, conducted in collaboration with KPMG Spain.
Several factors contribute to this growth, including Spain’s privileged geographic location, market size, and high-quality infrastructure. These elements make Spain an attractive destination for growth and international projection.
David Höhn, partner responsible for China Practice at KPMG Spain, explains: “Chinese investments have entered vital sectors of the Spanish economy such as transportation, industry, infrastructure, and energy. This reality positively impacts economic growth and job creation while demonstrating strengthened relations between China and Spain—a relationship that has gained significant importance over the last decade.”
This does not mean that small Chinese entrepreneurs in Spain have stopped searching for new opportunities. Although the pandemic accelerated the closure of many businesses, Beltrán points out that within this community “there has always been significant mobility regarding opening and closing businesses.”
As Spanish children increasingly refuse to take over their parents’ bar businesses, new ventures run by Chinese entrepreneurs are emerging—such as bakeries, pharmacies, or Japanese and Korean restaurants. The number of takeaway businesses has grown significantly, while smaller premises in city centers have closed in favor of larger establishments on the outskirts.
“They’re on standby—waiting for a new sector that offers opportunities for investment,” Beltrán explains. “This has always been their approach: first restaurants, then bazaars, hair salons, bar takeovers, etc.” This constant search for profitable niches (often financed through loans from family and friends) appears to be a defining characteristic. “It’s the expectation most of them have—and one that many fulfill,” Beltrán adds.
He also highlights the high proportion of self-employed Chinese workers in Spain: 59,000 out of 104,000 registered Chinese citizens contributing to Social Security—approximately 57%.
Cultural Factors
Influenced by Confucian philosophy, Eastern individuals live to work, unlike Westerners, who work to live. Effort and ambition are key elements of the Eastern entrepreneurial spirit.
“Chinese entrepreneurs aspire to improve their economic position and are willing to dedicate as much time and sacrifice as necessary to achieve it,” explains Amadeo Jensana, an expert from Casa Asia. “A Chinese citizen would rather go 10 years without a vacation but own a high-end luxury car,” adds Junquera.
For many experts, this attitude stems from the desire to restore the prestige and pride that China lost during much of the 19th and 20th centuries. “They aim to become the leading economic power of the 21st century,” Jensana specifies.
The community has developed a network of interrelations that allows it to operate without relying on the channels used by the rest of society. Rarely will a Chinese individual go to a bank for a loan. Instead, they rely on guanxi, a system of lending among friends and relatives from their homeland. The group is highly self-supportive, with family and friends backing new business initiatives. It operates like a chain of favors.
Unlike traditional bank mortgages, guanxi loans are interest-free and require no collateral beyond the debtor’s word, as Eastern culture does not tolerate defaulting on payments. “Losing face is the worst thing that can happen within the Chinese community; it’s a disgrace for your entire family,” one expert affirms.
Professor Beltrán concludes that the presence of Chinese individuals in Spain is primarily centered around small- and medium-sized family businesses. Their SMEs are at the forefront of the internationalization of Spain’s economy in Asia, thanks to their investments in real estate, businesses, and companies in their country of origin.
They have a deep understanding of both worlds, and their bicultural nature gives them a comparative advantage as a bridge for investment in China and for import-export activities. Some local entrepreneurs are already forming alliances and joint ventures, leveraging this advantage to reduce initial implementation costs significantly. Additionally, elite postgraduate students provide highly skilled labor for executive and management roles. The United States has employed Chinese-Americans in its multinational subsidiaries in China because their bicultural background makes them highly adaptable to the environment.
Spain has a great opportunity for economic expansion through its global citizens from China, who are open to the world and possess firsthand knowledge of China’s unique characteristics.
