Concrete AnalysisSilk Road takes new turn with Chinese property investments in the West

The Silk Road is probably the oldest expression relating to the opening up of business channels between Asia and the West. The expression and the concept have certainly evolved through the centuries but remain relevant today.

The origins of the route can be found in the Han dynasty and its importance can be seen by the expansion of the Great Wall of China to protect it. As Mediterranean culture developed and advanced it became the umbilical cord of business and the interchange of technologies. As such, while silk trading was the catalyst for the establishment of this channel, an ensuing result was also the creation of social, economic and political ties.

Fast forward to the 21st century we are now witness to a redefining of the very concept of this route. A powerful China, the second-largest economy in the world, and with large foreign currency reserves, seems to have begun a slow but firm economic conquest of new territories by taking strategic positions in the "Old World".

We read almost daily in the media about new investment deals by Chinese companies and investors in productive sectors, the service sector and, of course, the real estate sector.

One of the clearest blueprints for change in general, and particularly in China, is the consolidation of a powerful mass of population with significant purchasing power. China now occupies second place in the ranking of number of millionaires, overtaking Japan and behind only the United States. Among their many aspirations is the desire to experience Western countries and culture as tourists.

With this in mind, if we look at recent corporate deals in and around Spain, a common thread appears.