Spanish Trade Associations Become a Hurdle for Chinese Business Owners, Repeatedly Targeting the Com

For many industry associations in Spain, Chinese business owners, especially those in the dollar store industry, are likely familiar with them. In recent years, when the Chinese department store industry was expanding rapidly, these associations repeatedly targeted Chinese merchants, leading to numerous inspections and restrictions from government departments.

Since then, whenever a Chinese business in a particular industry has significant growth, the corresponding Spanish industry association would step in to complain and expose the impact of Chinese businesses on them, as well as various violations and illegal activities by their Chinese counterparts. Consequently, government inspections and restrictions would follow. After the department store industry, Chinese food stores, hair salons, nail salons, and others have experienced similar fates.

Now, as some emerging industries for Chinese merchants in Spain, such as the electronic cigarette industry, are on the rise, Spanish industry associations have once again jumped in to criticize Chinese businesses. Moreover, as Chinese investors begin to aggressively seek investment opportunities in Spain, these associations have openly resisted.

It is evident that the numerous industry associations across Spain have become a hurdle that Chinese merchants must overcome in their development. Otherwise, they will face more difficulties in the future, potentially becoming marginalized. This situation can be summarized by a Chinese proverb: "A strong dragon cannot suppress a local snake." Thus, how the "strong dragon" can achieve harmonious coexistence and mutual development with the "local snake" has become a pressing issue for Chinese merchants in Spain.

Conflicts with Further Development of Chinese Merchants

Chinese merchants starting and developing their businesses in Spain inevitably create competitive relationships with local counterparts. Additionally, due to the flexibility and hard work of Chinese individuals, along with the price advantages of Chinese products, local competitors often find themselves at a disadvantage and sometimes even suffer from the impact brought by Chinese merchants.

As Chinese merchants continue to grow, the resentment among local Spanish competitors has also intensified. In this context, seeking help from local industry associations and using media to pressure the government to take administrative measures against the so-called "illegal activities" of Chinese merchants has become their usual tactic. Chinese businesses in the department store, hair salon, and food store industries have already experienced this firsthand. Recently, Chinese merchants in the electronic cigarette business have also begun to taste the "harshness" of Spanish competitors.

Electronic cigarettes are a relatively new phenomenon that has emerged and developed in recent years. Compared to traditional cigarettes, electronic cigarettes not only have similar flavors and tastes but also offer better health protection for smokers. Therefore, upon their introduction, electronic cigarettes were widely accepted by smokers, leading to a rapid market formation.

Compared to China and other EU countries, the electronic cigarette market in Spain has formed relatively quickly, taking only three years. In China, the production and sale of electronic cigarettes have been ongoing for over a decade. With the long-standing advantages of this industry in China and the strengths of Chinese merchants, some Chinese electronic cigarette distributors quickly gained a foothold in the Spanish market. For example, a Chinese distributor in Valencia registered the patent for electronic cigarettes in Spain, leaving many local businesses feeling helpless.

Regarding the market advantages achieved by Chinese merchants, practitioners in the Spanish electronic cigarette field have begun to complain through media channels about their unfavorable positions, as well as the "misdeeds" of Chinese businesses in this industry. They have also pressured the government to "consider the common interests of Spanish practitioners in this field and regulate the market." Recently, such voices have been incessantly heard in the media.

Last month, an article was published by the Spanish association of electronic cigarette practitioners in the media. In the article, they stated: "Currently, the electronic cigarette industry has made significant progress in other countries, but in Spain, it has stagnated. Why has this phenomenon occurred? When will the government regulate this industry? Why does the government allow any merchant to sell electronic cigarettes? For example, electronic cigarettes can be seen for sale in dollar stores, gas stations, and Chinese shops. Especially the Chinese, who sell products of extremely poor quality at ridiculous low prices. Why has the government turned a blind eye to this? Time is running out, and we are tired of waiting."

After pointing out the so-called "chaos" in the Spanish electronic cigarette market, an organization called the "National Electronic Cigarette Association" suggested to the government to implement a "sales licensing" system, allowing only specialized and authorized individuals and businesses to sell electronic cigarettes. This would ensure the quality of related products and also be responsible for consumers.

In their suggestions, the association specifically mentioned that electronic cigarettes from European and North American brands are guaranteed in quality. This subtly implies that Chinese products lack quality. Furthermore, the statement that "the Spanish government should consider the common interests of the majority in the industry" directly targets the exclusive monopoly position of Chinese distributors after registering electronic cigarette patents.

Based on the experiences of other industries previously engaged by Chinese merchants, it is likely that, under the continuous calls from the Spanish electronic cigarette association, relevant government inspections and restrictions will come in due time. The "National Electronic Cigarette Association" has also hinted that the Spanish government departments are expected to take action this autumn.

Challenges for Chinese Investment in Spain

Spanish industry associations not only create a "hostile environment" for Chinese merchants in a particular industry but have also become a significant hurdle for prospective Chinese investors looking to enter Spain.

Recently, as the Spanish economy has hit rock bottom and signs of recovery have emerged, many Chinese investors have increased their investment in Spain. Additionally, the recently passed "Entrepreneurship Law" in Spain has sparked interest in investment opportunities here.

As some Chinese investors follow in the footsteps of investment tycoons like Wang Jianlin to seek opportunities in Spain, Spanish industry associations have once again stepped in, citing the need to protect the quality and purity of "Spanish manufacturing" and prevent the influx of Chinese capital as reasons to obstruct Chinese investments in relevant industries. Recently, the Spanish Footwear Association expressed its "unease" and opposition to the intention of Chinese funds to enter the local footwear industry.

In a recent media interview, the Spanish Footwear Association stated that with the arrival of a large number of Chinese investors, the Spanish footwear industry is likely to become a hotspot for Chinese investment. At that point, Chinese capital would participate in the design and manufacturing of Spanish brand shoes. This would reduce Spanish shoes to mere products under the label of "Spanish manufacturing," which would be detrimental to the quality and original characteristics of Spanish footwear.

According to the Spanish Footwear Association, most Chinese individuals looking to invest in Spanish footwear are former importers and distributors. Now, these Chinese merchants want to invest in producing Chinese shoes labeled as "Spanish manufacturing." This intention is seen as "extremely dangerous" by some Spanish footwear manufacturers. Therefore, the Spanish Footwear Association remains highly vigilant regarding potential Chinese investments.

Members of the Spanish Footwear Association are primarily concentrated in traditional footwear manufacturing regions like Elche. A local Spanish owner stated that Chinese individuals always try to infiltrate the local Spanish footwear industry in various ways. Many manufacturers in Elche have expressed strong opposition to this. "If Chinese money is invested in local companies that are struggling due to a lack of funds, we would welcome it with open arms. But the idea of labeling it as Spanish manufacturing is absolutely impossible." It has been reported that an increasing number of Chinese individuals have been in contact with local related enterprises and associations regarding investments in the local footwear industry. However, this has led to increasingly strong opposition from local Spanish business owners in Elche.

While some Spanish footwear manufacturers welcome Chinese investments in struggling local businesses, others express concerns. Those who completely reject Chinese investments argue that due to the economic crisis, many footwear companies in Elche, especially small family businesses, are in dire straits. These companies are desperately in need of funds. However, Chinese capital is a double-edged sword; while it may help companies with well-known Spanish footwear brands temporarily overcome their current difficulties, it could also harm the long-term interests of "Spanish manufacturing." One footwear merchant stated: "Chinese investment is today's bread, but tomorrow's hunger." It is clear that many Spanish footwear manufacturers view accepting Chinese investment as a short-term solution that could lead to long-term problems.

Due to the opposition and obstruction from the Spanish Footwear Association, Chinese investments in the Spanish footwear industry are currently very limited. Some Chinese investors who intend to invest in this industry and have conducted research and negotiations have also encountered significant difficulties in the implementation and advancement of their projects. This indicates that Spanish industry associations have become a formidable barrier for Chinese investors.

Becoming Part of the Other Side or Finding Solutions

In fact, the challenges faced by Chinese merchants in Spain due to the obstruction of industry associations are not new. Previously, some Chinese merchants in various industries have chosen to communicate and cooperate with relevant industry associations to eliminate misunderstandings and hostility. Some Chinese associations have even joined local industry associations as members, successfully turning adversaries into allies. For instance, a few years ago, in response to complaints and accusations from the Spanish Small and Medium Enterprises Association, the Chinese Food Association managed to achieve mutual understanding through communication and ultimately joined the association, becoming part of it. Since then, both sides have not only coexisted peacefully and sought mutual development but the Small and Medium Enterprises Association has also become a good friend and supporter of the Chinese community in matters such as rights protection.

The experience gained by the Chinese Food Association is highly valuable for other industries to learn from. Everyone should brainstorm together to find effective strategies to overcome the hurdle posed by Spanish industry associations, achieving mutual development based on mutual assistance.