Spain and China strengthen economic ties: a strategic shift with potential implications for Spanish real estate

19/11/2025 – ⏱ 4 min

This article is for informational purposes only and does not constitute, under any circumstances, investment advice or a recommendation.

Spain and China have taken a significant step toward deepening their bilateral relationship, with implications that extend well beyond diplomacy. King Felipe VI’s state visit to China from 10 to 13 November —the first by a Spanish monarch in 18 years— marked a renewed push to expand economic cooperation at a time of global geopolitical realignment. The visit included meetings with President Xi Jinping and a clear message from both sides: the intention to reinforce a strategic partnership at a moment when global supply chains, technology flows and investment priorities are being reshaped.

According to Spanish and Chinese official statements, Beijing sees Spain as a key European partner in sectors such as industrial manufacturing, electric mobility, renewable energy, and technology. Madrid, for its part, emphasises its interest in attracting investment and strengthening trade relations while navigating the European Union’s cautious stance on economic dependencies with China. The timing is symbolic: 2025 marks the 20th anniversary of the Comprehensive Strategic Partnership between both nations.

A central component of the visit was the Spain–China Business Forum held in Chengdu on 11 November. Organised by ICEX, the Spanish Chamber of Commerce, CEOE, and the China Council for the Promotion of International Trade (CCPIT), the event brought together around 440 companies from both countries. The forum was inaugurated by King Felipe VI and attended by Spain’s Minister of Economy, Trade and Enterprise, Carlos Cuerpo, as well as senior regional authorities. Discussions focused on industrial cooperation, technology, automotive supply chains, consumer markets and opportunities to collaborate in third countries.

While the official agenda centred on industry, energy and technology, the implications for Spanish real estate are increasingly evident. Recent years have seen several Chinese companies announce or explore investments in Spain in areas such as electric vehicle manufacturing, battery ecosystems, renewables and industrial logistics. These projects require land, industrial facilities, offices, logistics platforms and, in many cases, broader urban development. Each industrial decision carries a real estate dimension—whether through greenfield projects, retrofitting of existing facilities, or new logistics networks tied to European supply chains.

This renewed bilateral engagement comes at a time when Spain’s real estate investment market is experiencing strong momentum. According to major consultancies, investment volumes between January and September 2025 reached roughly €12–13 billion, around 40% more than a year earlier. Activity is concentrated in the living, retail and hotel segments, while logistics and industrial assets continue to attract sustained investor appetite, partly due to reshoring trends across Europe. A reinforcement of economic ties with China could further amplify demand for industrial land, specialized logistics hubs and hospitality assets.

Tourism is another sector where the relationship could have tangible effects. Chinese tourism to Spain has rebounded strongly, with visitor numbers climbing sharply in 2024 and approaching pre-pandemic levels. At the same time, Spain set an all-time record of 94 million international visitors in 2024. Strengthened institutional links with China could accelerate the return of high-spending Asian tourism, benefiting hotel markets in destinations such as Madrid, Barcelona, the Costa del Sol and the Balearic Islands —markets where hotel transactions have already accounted for a significant share of total real estate investment in recent years.

However, the deepening of ties unfolds against a backdrop of strategic scrutiny within the European Union. Issues such as trade imbalances, electric vehicle competition, and technology transfer remain sensitive points in EU-China relations. For real estate investors, this adds a layer of political and regulatory risk analysis, especially in projects linked to critical infrastructure, advanced manufacturing or strategic logistics.

Overall, the state visit and the Chengdu business forum do not immediately transform the flow of Chinese capital into Spanish property. But they mark a clear shift: Spain is positioning itself as an industrial, logistical and tourism platform within the EU at a time when its real estate market is demonstrating resilience, high liquidity and strong demand across several segments. Whether new alliances materialise in the form of industrial parks, logistics hubs, hotel acquisitions or technology campuses will depend on how these diplomatic foundations evolve into concrete investment decisions over the coming years.

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