Looking east for future prosperity

Former government minister Mary Harney once mused on whether we were closer to Boston than Berlin. In years to come, we may find ourselves even closer to Beijing if this week's visit of the Chinese vice-president, Xi Jinping, is anything to go by. The fact that Mr Xi chose to spend three days in a country of just 4.5 million people, the only country in Europe he chose to visit following a trip to the United States, speaks volumes not only about his view of this country but of the opportunities China sees in Ireland that can benefit both countries in the future. It is, by any stretch of the imagination, a huge boost to Ireland that he chose to some here. Ireland is now seen by the Chinese as the gateway to Europe. It is already seen as such by corporate America, whose companies have been investing here for decades. Now the Chinese clearly have their eyes on the country as the perfect base from which to access the largest and most lucrative single market in the world. As a representative of a country and an economy that will play a growing role on the world stage, it is crucial that all aspects of Ireland's bilateral relationship with China are now developed. Mr Xi may well only be his country's vice-president but he is the heir apparent in Beijing and will more than likely take over as leader of his country in the autumn. The 58 year-old statesman cuts quite a different figure to China's current leader, Hu Jintao, who is regarded as more wooden and distant. Mr Xi, on the other hand, was happy to let people know that he is just a regular guy, happy to hit a sliothar in Croke Park and get down and dirty on a farm in Co Clare during his time here. His affable personality certainly projects a different image from the usual Chinese leaders we are used to seeing and this will undoubtedly help to translate into good relations between our two countries in the future. The government has stressed that a crucial part of its much-vaunted Action Plan for Jobs is to increase trade and investment activity with key markets such as China, in addition to other emerging markets like Russia and Brazil. Agreements have been signed to deepen and expand enterprise links to provide substantial growth in the level of services trade. This will be of assistance to Irish businesses seeking to break into the Chinese market for the first time and expand their activities there. There is also strong potential for increased inward investment as China seeks to deepen its engagement with the EU. Ireland is well-placed to be the target of such investment as the only English-speaking member of the eurozone. Enterprise Irelandand the IDA are a key organisations in helping strengthen this new trade relationship with China. EI already has three offices in China and operates an extensive range of supports to help Irish companies expand into the Chinese market. Ireland's population may be dwarfed by the size of any one of dozens of Chinese cities alone, never mind the entire country, but the Taoiseach stressed the country's great strengths during his discussions with the Chinese vice-premier. Ireland's presidency of the European Union in 2013 also will represent an invaluable opportunity to demonstrate the contribution Ireland can and does make at the heart of decision-making in Europe, he added. Mr Xi, for his part, said China offered "tremendous business opportunities" for Irish and other foreign companies. "Irish business people are known for their hard work and enterprising spirit. I hope that businesspeople from both countries will seize the opportunities and deepen our economic and trade co-operation," he told his audience during his visit to Dublin. Irish exports to China grew by 10 per cent in 2010 to €251 million. Initial estimates for last year show exports up by a further 10 per cent with Enterprise Ireland aiming to increase this to 15 per cent this year. Over 200 Irish companies currently export to China, and 140 of them already have offices in the country, in anticipation of a massive surge in demand from the growing middle class in the country who are becoming exposed to western tastes in everything from food to luxury goods. The possibilities in a market this size seem endless. The extensive Chinese media coverage of Mr Xi's visit has also helped hugely in raising Ireland's profile as a tourism destination, particularly pictures of him in Croke Park and at the Cliffs of Moher. Only around 10,000 Chinese visitors come to Ireland each year but this has clearly the potential to grow very significantly.