Spain and China, Allies but not Colleagues in Trade
This post comes to underline the strategy played by Spain on EU’s China policy, a role which has received virtually no attention so far, as well as the major reasons why Spanish e-commerce is potentially attractive for Chinese companies.
Spain´s strategy is based on promoting a political resemblance with China in order to gain a preferential economic treatment, a plot which has led to disparate results for both China and Spain.
A general view of bilateral trade
Even though both countries feel friendliness each other, they do so for different reasons: Spain emphasizes on economic benefits, while China is interested on Spanish political weight on the European stage.
In the last thirty years, Spain has tried to turn China into a key-partner, with mixed results in practice.
- China is the 5th non-EU destination for Spanish exports
- China is the 1st non –EU origin of Spanish imports
- Spain is the 7th trade partner of China in –EU
- China is the 11th destination of Spanish exports
- China is the 14th destination for Spanish investment (less than 1% of total)
- Spain is the 9th destination for Chinese investment in -EU
When looking at the evolution, some positive trends can be underscore:
- Spain’s exports to China have double to 4 billion in 2014
- China’s exports to Spain are growing since 2013
- Both country´s exports are well diversified
After the financial crisis in the West, Spain has redoubled its efforts to trade with China. There is still a huge growth potential for both countries to further develop.
Political understanding to facilitate Chinese future investment
The difficulties encountered by the Spanish companies in their landing in China contrast with the political temperance shown by Spain in its approach to China. The policy marked by Spanish governments regarding its Chinese counterpart has never shown significant differences: whether the party in power, Spanish policy has always been the same.
Far from stagnating, Golden Visa and Spanish Treasury Bonds are just two examples shown by Spain to attract Chinese investors, as well as the constant reminder of its close ties in Latin America.
The potential of Spanish E-commerce: an opportunity for Ecommerce business
Comparing to other mature markets, there are still loads of fresh chances to seize in the country: Spain’s ecommerce market as a whole is relatively small.
According to the latest analysis –Ecommerce Europe ´14-, Spain is the largest Ecommerce market in Southern Europe, far from Italy (2nd) and Turkey (3th).
Around 60% of Spanish customers already shop online, spending on average € 900 per year. Moreover, more than the 60% transactions are cross-border: UE, US and China lead the Top-3.
Its growth potential can be prompted by some aspect anyone thinking on approaching Spanish ecommerce should take into consideration :
- Improvement in logistics
- Take an advantage of the lower cost for online marketing
- Customer acceptance of foreign W-shops
- Spanish consumers distrust on websites, so offering a secure payment method is a must. Paypal is the favorite of more than half of buyers
- Spain is the European leader in mobile usage, and keeps growing
- Spain is the best gateway to test Portugal and Latin American countries
The bilateral relationship between China and Spain is one of our tasks. Thanks to our understanding of the market, in 2 Open we can help you boost your digital business.
Leverage the benefits both countries offer to your company,
2Open at the Avante Awards
This last February 2Open was at the Extremadura’s Avante Awards Ceremony that took place in Badajoz (Extremadura, Spain). This event is held every year since 2013 and it recognizes and commemorates Spanish companies from that region who have had success in international markets. Not only do they award companies who have had an outstanding performance abroad, but also encourages people who show talent, effort, creativity and innovation to position themselves at an international level.
The event aims to incentivize Spanish companies from the region of Extremadura to export value outside of the country, companies who are featured in this event are companies who have had a struggles, obstacles and cultural barriers and have managed to overcome them. 2Open is a proud contender for this award in 4 of its 5 categories which are the following:
- Extremadura Exporta “Trayectoria”, This award focuses on the trajectory of the company. The obstacles and difficulties it had to overcome to gain its position in the foreign market in which it operates. Mostly, it rewards effort, persistency and success cases of a company’s path.
- Extremadura Exporta “Innovación”, This award is for companies who have innovated in someway. This could be by implementing new processes and/or techniques in its exported products or services as well as ways to penetrate a foreign market, differentiate themselves and gain competitive advantage.
- Extremadura Exporta “Joven” , This award is for the young entrepreneur or business man/woman who has managed to be successful at an international level.
- Extremadura Exporta “Agroalimentario”, this category is for the companies who have successfully exported food related products from the region of Extremadura to other countries.
- Extremadura Exporta “Conocimiento”, this award is given to the company who has had success in other markets by transferring knowledge and expertise. This is a new category for this third edition of the Extremadura Avante Awards.
Exporting is an unknown adventure for most companies but day by day, these companies overcome fears and obstacles and Extremadura Avante thinks that they should be awarded for that. We could not agree more, it is not an easy task, but companies like 2Open will encourage other to reach that so desired international level.
We would like to thank Extremadura Avante for giving 2Open a space in its event and for helping other companies to go abroad.