The dragon and the tiger

Those who know the Chinese marketplace say success there is based on careful building of personal and commercial relationships…

Those who know the Chinese marketplace say success there is based on careful building of personal and commercial relationships over a relatively long period of time.

This lesson was learned by the Taoiseach, Mr Ahern, in the mid-1990s, when he familiarised himself with east Asia's economic and political potential, and was applied by him in Government when he set up an inter-departmental group on the region in 1998. His visit to China this week will focus mainly on trade and investment opportunities for Irish-based firms, 200 of whose executives are accompanying him there, along with several Ministers.

The successful development of economic and political relations between Ireland and China over the last seven years bears out the wisdom of this approach and augurs well for the future. Trade figures are heavily weighted in China's favour, reflecting its rapid emergence as a world workshop. Thus, imports from China amounted to €2.3 billion over 11 months of last year, while exports were €577 million, representing an increase of over 40 per cent on 2003. Within those figures the role of indigenous Irish firms, as distinct from multinationals based here, is small, amounting to only €43.2 million to China and €57.2 to Hong Kong in 2003. Investment tilts the other way, reflecting Ireland's greater relative wealth, but is still modest.

This visit is intended to consolidate these relationships and develop them further. They should start to respond after such careful preparation, which has been well stimulated by high level visits over the last few years from both states. The astonishing growth in China's eastern provinces is set to continue, despite regular waves of protest against its pace and intensity from workers and residents who bear most of the social costs.

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We do not hear much about this more turbulent side of Chinese life from its media, which remain subject to state regulation and censorship. The same applies to human rights more generally. These issues will be discussed during the visit with Chinese leaders. They have become an established part of the bilateral and EU-Chinese agenda and its running dialogue. Keeping up pressure on them is a necessary accompaniment of the mainly economic agenda on this visit and the mainly economic agenda of Irish-Chinese relations. It reflects a two-way interest in emerging high technologies as well as intermediate ones - a fruitful mix for both sides.

The Chinese ambassador points out in an article in this newspaper today that it is 26 years since formal relations were established between the two states. Cultural and human contacts have developed strongly since then. Education is to the fore, with the rapid growth here of language schools for Chinese students, many of whom also find work in Ireland's flourishing labour market. The record is uneven and can certainly be improved. But the Chinese dragon and the Irish tiger have much to gain by dancing together.