Portugal as a gateway: the new era of Chinese investment
More than an investment destination, Portugal is positioning itself as a legal and logistical hub connecting three economic spaces: China, the European Union and Portuguese-speaking countries.
The dynamics of Chinese Foreign Direct Investment (FDI) in Portugal are going through a period of transition. While the past decade was marked by large M&A transactions in strategic sectors, such as China Three Gorges’ entry into EDP, State Grid’s investment in REN, and Fosun’s acquisitions in Fidelidade, Luz Saúde and Millennium BCP, the current moment reflects a shift in approach.
Rather than acquiring established assets, Chinese investors are increasingly focused on building from the ground up. The growing emphasis on greenfield projects and EPC (Engineering, Procurement and Construction) contracts reflects a strategy of deeper industrial integration and long-term positioning in the Portuguese market.
This shift reflects broader global trends, particularly reindustrialisation and the energy transition, with an increasing emphasis on technological infrastructure and advanced industrial production. Projects involving high-end cosmetics packaging and carbon fibre components clearly demonstrate this evolution. The objective is not merely to invest, but to integrate into industrial ecosystems and participate more actively in global value chains.
Portugal as a strategic platform within a triangular framework
Against this backdrop, Portugal is strengthening its position as a strategic platform. More than simply an investment destination, the country is establishing itself as a legal and logistical hub linking China, the European Union and Portuguese-speaking countries.
Through Portuguese jurisdiction, investors gain access to the EU single market while also benefiting from a privileged bridge to geographies such as Brazil, Angola and Mozambique. This triangular positioning remains one of Portugal’s key differentiators within Europe.
Lisbon therefore plays the role of a legal and financial base, offering predictability and security in the structuring of complex international operations.
Balancing attractiveness and the cost of time
Portugal’s competitive strengths are widely recognised: political stability, legal certainty and a highly skilled workforce, particularly in engineering and technology. Strong language capabilities and cultural adaptability further enhance its appeal for international projects.
That said, this optimism is tempered by what can be described as the “cost of time”. Administrative bureaucracy and the slower pace of operations remain the main constraints. For investors used to the speed of “China speed”, timelines in the Portuguese public system require careful expectation management, with a direct impact on execution and returns.
The role of lawyers
In this context, the role of lawyers becomes more prominent. It goes beyond technical advice and extends to acting as a strategic and cultural bridge. MdME’s presence across Lisbon, Macau and Hong Kong allows the firm to connect different legal systems and interpret business practices between Portugal and China. This demands not only legal expertise, but also an understanding of different working rhythms and decision-making approaches.
With increasing regulatory scrutiny, particularly through FDI screening mechanisms and the EU Foreign Subsidies Regulation, compliance has become central to the viability of investments. Legal advice is therefore a core part of strategic planning, with a direct impact on timelines, risk management and project execution.
This article was originally published in the special edition of Expresso, one of Portugal’s leading newspapers.
