China can learn from Ireland’s economic transformation

Despite the financial woes of late, Ireland can still serve as a model of economic transformation, even for global superpowers like China.

According to Ma NingYu, director-general of the big data development centre in the Guizhou province, Beijing can learn from how Ireland turned a largely agrarian-based society into a modern, high-tech economy.

“In the past Chinese success was based on labour-intensive manufacturing industries but now the country needs to be transformed into an innovation-driven economy and this brings with it many challenges.”

Ireland underwent a similar transition, albeit from an agricultural base, but there are lessons to be learned, Mr Ma said.

He was attending a conference on big data in Dublin today, organised by the Guizhou authorities to sponsor closer ties with the sector here.

At the event, which was attended by Guizhou governor Kezhi Zhao, 35 contracts involving Irish and Chinese firms were signed.

Traditionally one of the poorer parts of China, Guizhou has undergone a rapid economic transformation in recent times and is now one of the fastest growing regions in China, boasting an annual GDP growth rate of 13 per cent.

The authorities are trying position the province as China’s new high-tech hub.

Mr Ma said the Guizhou authorities chose to hold the conference in Dublin because Ireland was seen in China as a centre for service out-sourcing and software development.

Despite signals of a major economic slowdown in China, Mr Ma said the country was still growing at a faster pace than most developed countries.

Nonetheless, a gauge of activity in China’s services industries declined to an eight-month low today, adding pressure on the government to adopt stronger stimulus measures.

The reading suggests a property slump is dragging services industries, which had been among the better performing areas of the economy this year.

However, Mr Ma downplayed concerns the country was on the verge of a major property crash after several years of a credit-fuelled boom.

Mr Ma said average property price in Guizhou’s capital city Guiyang in 2003 were about 4,000 yuan (€500) per square metre and now the price is only about 600 yuan higher.

He also said many regions in China had GDP growth which was outstripped the rise in property prices.

Mr Ma also dismissed suggestions the current protests in Hong Kong would have a destabilising effect on China in general, saying he was convinced Hong Kong society would chose a path of "stability".