March 2014

1. Investment and Business Opportunities for Chinese Investors in Spain “La Nueva Ley de Emprendedores y su Trascendencia en China” March 2014

2. 1. Economic Policy and Structural Reforms: Setting the Foundations for Sustainable Growth

3. Setting the Foundations for Sustainable Growth COMMITMENT CONFIDENCE COMPETITIVENESS Transformation of Spain´s Growth Model EMU Integration Spanish Economy Policy External Sector Contribution to Growth Fiscal Consolidation Single Monetary Policy Structural Reforms for Competitiveness Correction of Past Imbalances Restructuring the Financial Sector Fiscal Coordination Economic Growth & Employment Structural Reform: BANKING UNION 3

4. Business Friendly Oriented Structural Reforms Of special interest to Foreign companies Fiscal consolidation at all levels of Administration CompetitiveLabor Costs Public Sector Reform Labor market reform. Domestic and International Market Acces Provisioning system redressed and restructuring process. FinancialSystemReform Index, 2005=100; Source: EurostatFebruary 2014 Ensuring Market unity regulation at national and E.U. level. Investment Incentives Economic Regional Incentives, R&D and Funding mechanisms and Tax relief Resident and Work Permits Law on visa and work permits and flexible application to foreign investors.

5. Labour cost & Productivity Labour cost in Spain is below the EU-27 average and Labor Productivity is growing Source: Eurostat October 2013; Data: % change on previous period

6. It is based on an agile and specialized system for visa and authorization concessions. GENERAL REQUIREMENTS Not being in an illegal situation in Spain New specific framework for qualified immigration and investors THE PROCEDURES Being 18 years old or older 10 days for visas and 20 days for authorizations Not having criminal records A single authorization for living and working in Spain Public or private health insurance in Spain Enough economic resources. Valid for the whole of Spain The family will be able to apply at the same time VISA AND AUTHORIZATION CONCESSIONS FOR Investors Entrepreneurs Highly qualified professionals Scientists and researchers Intra-corporate transferred employees Freedom to live in Spain: Granted residence and work permits authorization

7. 2. Spain: a Global Platform for International Business & Investment

8. Spain, key figures

9. Spain, strong and sustainable external sector performance • A competitive combination: technology, innovation, productivity and lower Unit Labor Cost have lead to a competitiveness based expansion of exports during the last three years. Export of good and services, 2005-2013 Source: Eurostat, 2013.

10. Position of China and Spain in terms of foreign investment Leading economies Inward FDI, USD Millions Leading economies Outward FDI, USD Millions Source: UNCTAD, 2013 Source: UNCTAD, WIR, 2013

11. Spain: Investment in Latin America Spain: Top- Outward FDI Stock by country EUR Millions Spain is the world’s 1st or 2nd largest investor in Latin America among European countries. Spanish Ministry of Economy and Competitiveness, 2013

12. 3 out of every 5 flights world-wide are controlled using Spanish air navigation systems. • Telefonica is one of the largest telecommunications companies in the world (by market capitalization and number of customers). • Santander Bank is the 2nd in the euro zone (by stock market capitalization) and BBVA now operates in 40 countries. • IBERDROLA is the 4th largest utility company in the world (by market capitalization). • In 2012, 6 of world’s top 10 concession companies are Spanish and held 36% of the world´s infrastructure concessions. • The Al Shoula Group, a Spanish-Saudi consortium, will manage the high-speed train between La Mecca – Medina. Spanish companies are among leading companies in the world:

13. Foreign Investment Openness Spain is 9thmost open country to Foreign Investment according to OECD’s FDI Restrictiveness Index Open=0 Closed=1 Source: OECD’s FDI Restrictiveness Index 2013

14. Domestic and EU Market Access • Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP) above the EU-27 average • Spain grants free access to the world´s largest market, the European Union: more than 500 million consumers. Capacity for consumption of goods Source: IMF 2014. Advantages to operate in EU: • Intra-European duty free market. • The free movement of goods & services, capital and persons. • Single currency: EURO. BYD signed an agreement with the Basque group Bergé on the distribution of BYD’s products in Spain. Barcelona became the first European city to have a pure electric 12 meters bus.

15. SPAIN: International platform for doing business in MENA region, Africa and Latin America • The best European platform for doing business with Latin America. • Spain has superb relationships with the North- African and Mediterranean countries and geographic proximity. The general manager of Cosco, Yang Lei, highlights the use of the geographical position of Spain and the language as a platform for doing business in South America and North Africa . • Euro-Mediterranean Association Agreements • Agreements for Protection and Promotion of Reciprocal Investments • Agreements to Avoid Double Taxation

16. Over 12,800 foreign companies are currently located in Spain across all economic sectors . 70 of the FORBES Top 100 companies have branches in Spain. 90 out of 100 top R& D Companies according to Thomson Reuters has a subsidiary in Spain

17. Spain: Inward FDI by country Stock EUR Millions • Companies of USA, Italy, France, UK, and Germany are the largest investors in Spain. • Most Chinese companies in Spain have partnerships with major Spanish companies. • There is mainly representation of Chinese companies in: electronics, wholesale trade, support activities for transportation and manufacture of machinery and equipment Spanish Ministry of Economy and Competitiveness, 2013

18. Greenfield Projects in Spain, by sector Source: FDI Markets: fDIReport 2013, Global Greenfield Investment Trends. Financial Times 2013

19. Greenfield Investment Trends in Spain by sector From China 2003 – 2013 (X) From Hong Kong 2003 – 2013 (X) Source: FDI MARKETS, 2013. Mill. USD Source: FDI MARKETS, 2013. Mill. USD

20. Business Opportunities in Spain • Environment & Natural Resouces • Automotive • Aerospace • Nearshore Services, • SSC, BPO, etc. • ICT • Tourism • Chemicals • Real Estate • Agrofood • Biotechnology • Transport & Logistic • Industrial Machinery

21. Business opportunities: REAL ESTATE Why Spain for Real Estate • Goodvalueformoneyoffer: • The stock reduction • The priceadjustment • Strong Legal and Institutional Framework • New measures • GrowingRentalMarket • IncreasingForeignInvestment • Professionals • Individuals • Spain, a major player in Tourism (2nd WorldwideTouristDestinationbyRevenues) • OutstandingConnections: International Airports, top High-Speed Train (AVE) and 3rd largest worldwide High-Speed Network • Excellentgastronomy, culture and climate. THE REAL ESTATE STOCK DISTRIBUTION (Number of Housing and % byRegion, 2012) Source: Ministry of Public Works, 2014.

22. Business opportunities: REAL ESTATE PRICE ADJUSTMENT Nominal HousingPricesAdjustment bytype of residence(Year-on-yeargrowthrates) Nominal Housing Price Adjustment Since Peak in Each Province (%) Source: Ministry of Public Works, 2013. 1st Q2012 1st Q2013 Source: National Statistics Institute

23. Business opportunities: REAL ESTATE INCREASING FOREIGN INVESTMENT Number of Foreigners’ Home Transactions • Foreign demand is starting to react to price signals: • After dropping 35% in 2009, the acquisition by non residents rose by 8% between 2011 and 2012. Total Real Estate Investment Volume Spain Source: Ministry of Public Works, 2013. Source: Ministry of Public Works, 2013. Foreigners’ Home Purchases (%) Estimate Source: Association of Property and Mercantile Registrars of Spain, 2014. Source: BNP Paribas, 2013.

24. Business opportunities: TOURISM • 3rd destination worldwide in number of international meetings (source: International Congress and Convention Association, ICCA) • Leading European destination in Tourism (source: Eurostat) • Top global leisure travel destination: 60.3 million tourists in 2013 • 2nd country in the world in terms of UNESCO World Heritage Sites (42 sites) • 2nd country in Europe in natural areas (14 national parks ,126 nature reserves) and natural spaces declared UNESCO Biosphere Reserves (42, behind only the United States with 47) • 2nd country, behind the United States, in receiving foreign golf tourists (431 courses and more than 1 million) • 2nd country in Europe in number of hotel rooms (3.2 million, more than 50% of which are superior category (4 and 5 stars); and 15,000 rural tourism establishments)

25. Business opportunities: TOURISM Success stories December 2012 • Chinese Real Estate developer Greenland group signed a strategic agreement with the Spanish hospitality group Meliá. • Greenland Group will exchange hotel assets with its Spanish partner, getting the Hotel TRYP Ambassador in Madrid and the Melia in Barcelona. The two hotels are valued at $242 million. • Its first result was the announcement of the “Qube” Meliáhotel in the city of Frankfurt April 2013 • NH Hotels has given the Chinese group HNA entry as a shareholder with a 20% by subscribing to a capital increase • The strategic agreement provides the framework to create a joint venture between the two groups for the primary purpose of developing the hotel business in China, one of the fastest growing markets in the world, while NH Hoteles will diversify its operations. • On top of that, the aim is to increase the flow of Asian customers in NH Hoteles, diversifying the type of users per country.

26. Business opportunities: TOURISM Success stories November 2009 • The HK Mandarin Oriental Hotel Group opened a luxury hotel in Barcelona in November 2009. • The hotel has taken full advantage of the luxury tourism visiting Spain, with an average room price above 5,000 HK$

27. Business Schools IE Business School holds the No. 1 position in the 2013 Financial Times ranking of European business schools Source: Financial Times 2013

28. Business Schools Spanish Business Schools have three MBA programs among the top 25 in the world Source: Financial Times 2014

29. ICEX / Invest in Spain your partner in Spain • 6. ICEX-Invest in Spain Orense 58, 3rd floor 28020 Madrid SPAIN T (+34) 91 503 58 00 E-mail: investinspain@icex.es www.investinspain.org

30. About us… • INVEST IN SPAIN is the Directorate in charge of attracting foreign direct investment in ICEX-Spain Trade & Investment, an official enterprise of the Secretary of State for Trade - Ministry of Economy and Competitiveness. Objectives & activities • To promote, attract and maintain foreign direct investment in Spain • Attracting new projects of foreign investment by focusing on countries, sectors and businesses that involve greater growth potential for Spain • Promoting a business climate and facilitating doing business in Spain • Transmitting an image of Spain as an internationalized country associated with highly competitive human and technological resources • To be the benchmark for foreign investors and the meeting point between companies and institutions in the State, Regional and Local levels engaged in promoting and attracting investments

31. Services of special interest : Immigration Department Provides advice about the most appropriate way (quickest and least bureaucratic) to obtain the permits for highly qualified employees, technical staff, scientists, families, ... • Advice about how to open a branch, create or acquire a company ... • Assessment regarding transactions that involve immigration issues for foreigners without residence in Spain • Act as the institutional contact for companies vis-à-vis all Spanish bodies with powers, such as the Spanish Embassy and Consulates, Ministry of Employment , Home Office and Regional Immigration Offices

32. ICEX / Invest in Spain your partner in Spain • 6. ICEX-Invest in Spain Orense 58, 3rd floor 28020 Madrid SPAIN T (+34) 91 503 58 00 E-mail: investinspain@icex.es www.investinspain.org