City administrators say Barcelona combines great living with an excellent business climate.

Innovative Mediterranean city still flourishes through trade.

Barcelona was first thrust onto the global stage in 1992 when it hosted the Olympic Games. The catalyst for a new era, the Olympics spurred economic growth within the industrial Mediterranean city. Situated on the northeastern tip of the Iberian peninsular, Barcelona is the capital of Catalonia, one of Spain's 17 autonomous communities.

Traditionally a textile region, Catalonia is now home to some of the most innovative service and manufacturing industries on the planet. Multinationals and local companies alike have found a business-friendly climate and excellent incentives there. Catalonia has more people employed in knowledge-intensive industries than London. And with more than 1.3 million workers, the region has an economy larger than Denmark's.

Barcelona is consistently ranked as a top European business city. It boasts a state-of-the-art international airport, a busy port, and a low-cost, efficient public transport system.

A high-speed train runs to Madrid several times a day, with new links to neighboring France and other Spanish cities opening soon.

In recognition of these assets, Barcelona was selected as an Urban Best Practice area at the Shanghai World Expo.

"Spain is our most trusted ally within Europe," said Premier Wen Jiabao.

Nearly 76 percent of Spain's investments with China originate in Catalonia, particularly in Barcelona. Currently, more than 500 Spanish companies have invested in China.

Business epicenter

"Catalonia is the business epicenter of Spain. It represents 30 percent of the nation's exports, but only 16 percent of the population," said Josep-Llus Carod-Rovira, Vice President of the Catalan Generalitat.

"With between 30,000 and 40,000 companies, we have a strong sense of entrepreneurship. In fact, we have the most companies per capita in Southern Europe, which shows that Catalan society trusts in opportunity and possibility."

This intrinsic entrepreneurial spirit is encouraged through competition, Minister of Economy and Finance Antoni Castells explained.

"Catalonia has many small and medium sized companies that have internationalized with success. To help foster fair competition we offer technological help to businesses with limited budgets. We also facilitate financing options to support global expansions."

Minister Castells went on to express hopes that China and Catalonia could increase exchanges particularly with regards to direct investment, human resources and tourism. Barcelona is a knowledge hub of southern Europe, he said.