Portugal, like other crisis-hit eurozone countries under pressure to sell off state assets, has sold large minority stakes in utilities and infrastructure operators to Chinese companies. As much as a gateway to Europe, these Chinese investors are also buying into what they see as a strategic hub for expanding across Brazil, Angola, Mozambique and other former Portuguese possessions.

“It makes sense to have a base in Portugal to train Chinese managers, gain experience and build networks for expanding into other, much bigger Portuguese-speaking countries like Angola and Brazil,” says Francisco Veloso, dean of the Católica-Lisbon School of Business and Economics.

Chinese investment has played a crucial role in the success of Portuguese privatisations, accounting for 45 per cent of the €9.2bn the country has raised from state sell-offs over the past three years, a total that is almost double the target set as part of the country’s international bailout programme. Taking future investment commitments into account, China has become Portugal’s most prominent source of foreign direct investment.