The Memorandum of Understanding (MOU) on a 5 year Medium-Term Cooperation Plan signed by the Chinese and the Maltese government in Beijing last July, is a blueprint for a multifaceted, future cooperation between the two countries. It augurs to provide a platform for the generation of many opportunities for business development for the Chinese in Malta as well as the Maltese in China.
China and Malta have enjoyed a long-standing friendship ever since the establishment of diplomatic relations, dating back to 1972, with Malta being one of the very first European countries, if not the first, to establish relations with China. Over the years, bilateral economic and trade relations between China and Malta have been developing steadily. Last December, the China-Malta Trade and Economic Joint Committee was revived and the 9th Session of this Committee was held in Beijing for further developing China-Malta economic and trade relations.
The recent MOU is the first formal Medium-Term Cooperation Plan that China signed with a European country. Thirteen areas have been listed in the MOU as the focus of cooperation during the period from 2014 to 2019, including the energy sector, infrastructure, construction, financial services, ICT, bio-technology, R & D, air services and tourism, aerospace and aviation.
‘According to our statistics, the trade volume between our two countries last year stood at 3.78 billion USD, a 16.56% increase year-on-year. Bilateral investments are also on the rise. Last year Shanghai Electric Power invested 320 million Euro in Malta, which is the largest foreign investment deal in Malta’s history.’ said Madame Qiu Guangling, Counsellor, Economic & Commercial Counsellor’s Office, Embassy of the People’s Republic of China in Malta. `This July, Huawei opened its local office in Malta and signed a MOU with Maltese government for research and development of ICT activities in Malta.’
For the Chinese, bilateral relations with Malta also puts forward an attractive possibility for them to get closer to EMEA countries. Malta is located in the heart of the Mediterranean Sea, connecting southern Europe and North Africa, which is considered as an outstanding strategic location since ancient times. Nowadays, as the EU’s smallest member state, Malta is compatible with the cultures of Mediterranean area, southern Europe and North Africa whilst the country strictly implements the safety, quality and environmental standards of EU and plays a unique role in the regional and international economic affairs. Malta could serve as an ideal point of entry for Chinese companies into the European and North Africa markets. Currently, more and more Chinese companies are seeking opportunities for investment and trading globally under the framework of the Chinese “Go Global” strategy.
‘During the first 10 months of 2015, Chinese investors have made an accumulative investment of more than 95.2 billion USD overseas, an increase of 16.3% year on year. Some of them have already recognised the importance of Malta’s location. Shanghai Electric Power and Huawei mentioned earlier are examples of this. This year, Shanghai Electric Power and Enemalta have set up a joint venture, International Renewable Energy Development Limited, a company formed to explore the various renewable energy projects across the European region.’ said Qiu Guangling.
China is also very open to foreign investing firms looking to set up or trade in China. During the first 10 months of 2015, foreign investment in China reached 103.6 billion USD, up 8.6% year on year. In comparison, the scale of investment from Malta into China is still very small. ‘Maltese companies should be more encouraged to expand their business to China. They will be welcomed when seeking investment opportunities in China and we will be happy to support with any information they might require.’ said Qiu Guangling.
She maintained further that her advice to companies seeking to promote business within the Chinese market would be to learn about the culture, legislation and market environment of China, as well as the potential customers, and to establish their reputation in China. ‘We suggest that companies choose reliable trade partners as well as appropriate products or projects and to ensure that these projects fully comply with the laws and regulations of China.`.
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Pierre Galea Musù
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Tel: +356 2133 1710
Email: [email protected]