BUSINESS

Chinese Firms Must Localize in Europe to Succeed, Official Says

Published: Mar. 12, 2026 6:11 p.m. GMT+8

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Shipping containers at the Port of Barcelona in Spain on March 5. Photo: VCG

Chinese companies seeking long-term success in Europe must establish local production and research hubs, as an export-only model is no longer the best strategy, according to an official from a Spanish investment promotion agency.

“If you want to sell in Europe, it’s very important to be close to your customers,” Jordi Ortiz, head of foreign investment at Catalonia Trade & Investment, told Caixin in an interview during the MWC Barcelona trade show.

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Chinese firms in Europe are shifting from an export-only model to establishing local production, R&D, and partnerships to meet market demands and regulations.
Catalonia, Spain, is a key destination, with Chinese investment tripling in five years; 2024 foreign direct investment exceeded €1 billion, with 106 projects.
Main focus areas include electric vehicles, renewable energy, and high-tech industries, benefiting from Catalonia’s talent pool and infrastructure.

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Who’s Who

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. is a Chinese automaker expanding its operations in Spain. The company is using a strategy of combining its technology with local industrial resources in Spain to better adapt to the European market. This approach aligns with the growing trend of Chinese companies establishing local production and research hubs in Europe, rather than relying solely on exports.

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