Dynamism in Sino-Irish trade

The number of contracts, deals and official initiatives announced in Beijing yesterday to coincide with an official visit to China by the Tanaiste, Ms Harney, highlight an extraordinary and genuine new dynamism in China-Ireland trade.

Ms Harney witnessed the signing of contracts between Irish software companies Baltimore and Oniva and their Chinese partners; a technology transfer agreement between Timoney Technology and Beijing Heavy Duty Truck Company; and the launch of a new internship programme to train Chinese IT professionals in the Republic. These deals and others to be signed this week are worth more than $12.2 million (€14.2 million).

Several factors are responsible for the new phase in Sino-Irish trade, which Ms Harney said stems from steps taken by the Republic to enhance relations at political, economic and academic level, the dynamism of Irish companies and the attractiveness of the Chinese economy. One is the expansion of Irish companies seeking business to maintain their place in the global export market. China, poised to enter the World Trade Organisation, has the greatest potential for high-volume growth in the world. Mr Dan Flinter, chief executive of Enterprise Ireland, said: "We ignore China at our peril."

Another is the fact that Beijing has just recently woken up to the possibility that the Republic, now the largest producer of software in the world, has a lot to offer China. Since his visit earlier this year, Chinese vice-premier, Mr Li Lanqing, has been enthusiastically promoting the Republic as an example of what can be done in IT and software technology. Dublin as a result has suddenly become number one destination for Chinese delegations.

The president of the Chinese Academy of Sciences, Mr Lu Yongxiang yesterday announced that he will lead a delegation from the academy's computer engineering centre to the Republic in October to have a look at software companies. The China Software Industry Association, and Zhongjuancun, Beijing's high-tech base, are also sending delegations in October.

Sino-Irish trade, two to one in China's favour, is now expanding fast, up 50 per cent in both directions in the last year and worth £1 billion (€1.27 billion). This has been mainly due to initiatives by private companies, but the placing in Beijing of Mr Michael Garvey as China director of Enterprise Ireland has brought a new level of professionalism to the Republic's presence, marked by an impressive presentation yesterday to Chinese business and IT journalists who were presented with glossy brochures in Chinese on Doing Business in Ireland.

"The number of people from China who want to visit Ireland has ballooned in the past two months," said Mr Garvey, who has suggested several innovations looking to the future. Among these are internships for young Chinese professionals in Irish companies, similar to the scheme operated by FAS under which Irish students went to Japan. The idea is to build lasting business contacts and a cadre of second-level management for Irish companies in China, he said. Baltimore Technologies will take the first intern in the scheme, run in conjunction with MOVTEC, the Chinese Ministry of Foreign Trade and Economic Co-operation.

Chinese students are also targeting the Republic: visa applications run at more than 4,000, twice that of last year. Ms Harney said she would raise on her return the problems of long delays in granting visas and the ban on Chinese students doing part-time work. Mr Andrew Kearns of Portobello College is expected to make a presentation to the Irish Exporters' Association on his return on the value to the Irish economy of the export of services.

Oniva, which specialises in enabling clients to deploy and integrate international ebusiness projects, announced a joint venture with Sparkice.com Inc, China's leading business-to-business solutions provider.

The $1.5 million deal between Timoney Technology, based in Co Meath, and Beijing Heavy Duty Truck Company, is the first technology transfer by an Irish company to an enterprise in China. It involves assembling 350 giant articulated trucks. Mr Eanna Timoney, chief executive, said the first prototype will be built in Co Meath.

Other agreements announced yesterday included the launch by MBC & Associates of Liuxue51.com, a Chinese language study opportunities portal, and a joint study programme by Athlone Institute of Technology and Beijing Zhong-Xin College of Business Management.

Today Ms Harney will meet Chinese Premier Zhu Rongji, before travelling to Shanghai where she will open the first Irish consulate in the city.