Ireland-China Business Magazine
Ireland Calling 2019 marks the fortieth anniversary of China Ireland bilateral relations. WRITES ENWRIGHT DE SALES, EDDIE CAO AND NITA KILLIAN
The rise of China in the global order and rebalancing of its economy from an export driven manufacturing economy to a consumer driven smart economy provides significant future opportunities for businesses in both countries notwithstanding some current global trade and geopolitical issues. PwC with its strong presence in both countries is already serving key clients going in both directions. We have a dedicated team with specialised knowledge and experience of the China market, culture and experience to help our clients in both countries maximise business opportunities.
China-Irish relations 2019 marks 40 years since the birth of official China-Irish relations upon the signing of the Communique on the Establishment of Diplomatic Relations between Ireland and China. Both countries have made significant economic progress over the last 40 years and their economies are well integrated into the global economy. China is the second largest economy in the world and many of its businesses rank in the top 5 in many areas such as manufacturing, banking, e-commerce to name a few. During this time and particularly over the last decade, the bilateral relationship and co-operation been the two countries has been excellent and there have been a number of visits from the senior leadership of both sides. Through focused 34
and concerted efforts from the Irish government, agencies, businesses and various organisations, trade with and investment from China to Ireland has increased significantly. During this time, trade has risen from €5 million to over €16 billion. Ireland has more than 400 domestic companies in China with an investment of more than €1.4 billion. Ireland is one of three EU countries which has a trade surplus with China. China’s FDI has also been increasing in a wide range of sectors, from biologics to technology to finance. As a result of focused promotions in China, Ireland now receives over 70,000 tourists annually and Tourism Ireland has set ambitious targets to more than double this number by 2025. The direct flights from Beijing and Hong Kong to Dublin as well this year’s new route to Shenzhen will greatly contribute to that number and provide better access for business and leisure travellers.
technology and R&D. Despite its small size, strong bilateral relations, a stable political environment and investor friendly policies should enable Ireland to get a slice of some of the Chinese outbound investment. China FDI has significantly increased over the last few years with the size of the transactions increasing steadily, most notably HNA Group’s purchase of the Irish aircraft lessor Avolon for €2.3 billion; and the acquisition of Genomics Medicine Ireland by WuXi NextCODE.
This anniversary is an opportune time to build upon the existing strong relationship between both countries and take the relationship to another level providing long term business opportunities for businesses in both countries.
Ireland has become a hub for innovation, with our small and medium enterprises credited as being the second most innovative in 2016 across all countries of the European Union (according to Ireland’s Competitiveness Scorecard 2018). Furthermore, Ireland boasts a clustering of the world’s leading technology and pharmaceutical companies with a vast network of highly trained industry participants and supporting professional service staff. The recent announcement by WuXi Biologics to build a significant biologics manufacturing facility in Dundalk is an example of the opportunities for Chinese investment in Ireland.
China will continue to be one of the largest outbound investors and outbound investment will be aligned to core business, complimentary businesses,
Surging Chinese demand for domestic travel is expected to consume approximately 19% of the world’s demand for new aircraft over the next two