Montenegro wants to attract more Chinese investment

It was in a climate of growing mutual distrust between the European Union and China that Luís Montenegro visited Beijing – nine years after the previous Prime Minister, António Costa, visited China in 2016 and the President of the Republic, Marcelo Rebelo de Sousa, visited the country in 2019. This official visit reinforced Portugal's strategic importance for Chinese investment, especially in areas such as energy, health, finance, and technological innovation. Foreign Direct Investment (FDI) from China in our country reached a record value of 3.96 billion euros in 2024, a growth of 9.3% compared to 2023, accumulating 14 consecutive years of growth.

Furthermore, trade tensions between Europe, the United States, and China also open a window of opportunity for Portugal to attract Chinese industrial investment in technologies associated with 5G and artificial intelligence, attracting capital, skilled jobs, new tax revenues, and exports. "In terms of our bilateral economic cooperation, it is my duty to tell you that we have not forgotten; on the contrary, we are very much aware of and respect China's investment in the Portuguese economy during one of our country's most critical moments, the financial crisis," Luís Montenegro told Xi Jinping at a ceremony held at the Great Hall of the People in Beijing.

Among the main cooperation projects between the two countries, the construction of the China Aviation Lithium Battery (CALB) factory, one of the world's largest suppliers of batteries for electric vehicles, in Sines, southern Portugal, stands out. This was a record investment by China in our country, worth two billion euros. In the energy sector, China Three Gorges has driven the development of renewables. The Fosun Group has expanded its operations in areas such as finance and healthcare.

Despite the strong Chinese investment in Portugal, Luís Montenegro also wants Portuguese agri-food and wine companies to have a greater presence in this Asian country to achieve a more balanced trade balance between the two countries.

Strategic partnership After Beijing and Macau, Montenegro landed in Tokyo. The main objective of the trip was to promote Portugal in areas where the Japanese are interested in investing, such as renewable energy, biofuels, and the blue economy.

In 2024, Japan was Portugal's 31st largest customer and 30th largest supplier of goods. Portugal's trade balance registered a deficit of €210 million, and over 97% of trade in goods was made up of manufactured industrial products (automobiles and base metals).

Among the sectors identified with the greatest potential for Portuguese companies are agri-food, technology and innovation, renewable energy, and health and well-being. In Japan, Prime Minister Luís Montenegro announced that Portugal and Japan will upgrade their bilateral relationship to a "strategic partnership," which will mark a "new phase" in cooperation between the two countries.

"It's not just a vague designation, an expression; it's a commitment to further our cooperation at the cultural level, the economic level, and the development of new areas of relationships," he said.

The head of government highlighted security and defense, new technologies, energy, and the sharing of scientific knowledge between educational institutions as areas to be developed for the future in the bilateral relationship.

Today, Friday, the last day of this official visit, the Prime Minister will travel by train to Osaka, where he will visit the Portuguese pavilions.