Tackling the `great wall' of ignorance

Michael Garvey sits in his office in Beijing and ponders the whirlwind 18 months he has spent as Ireland's business face in China.

A mere two years ago, he muses, a "great wall" of ignorance existed in China about Ireland. But a high-profile visit by the Taoiseach, Mr Ahern, to the world's most populous nation in September 1998 was the catalyst that changed all that.

"It is incredible," Mr Garvey says. "In such a short space of time we have gone from a situation where nobody here knew about Ireland to where we can hardly cope with the number of business delegations who want to visit."

Recognising that Ireland was not engaged enough with Asia, the Taoiseach appointed a committee to draw up a plan to develop foreign earnings in the Asia-Pacific region, including Australia, following his high profile trip in 1998.

The committee, comprising representatives of Enterprise Ireland, the IDA, Forfas, Bord Bia, Bord Failte, Bord Iascaigh Mhara, the Department of Enterprise, Trade and Employment, the Department of Foreign Affairs and the private sector, presented its report in January of 1999. The Asia strategy was born.

The report recommended that priority be given to improving political and business contacts in the Asia-Pacific region, as well as the raising awareness of Ireland as an investment location and a source of high quality exports.

The first step was to enhance diplomatic and promotional representation in the region. The Government agreed to establish a new embassy in Singapore while new consulates were set up in Shanghai and Sydney. Enterprise Ireland, which was to put the strategy into action, also assigned representatives to those locations.

Enter Michael Garvey, who with 15 years experience in Japan, Hong Kong and Taiwan with the IDA and Forbairt, was given the task of heading the Asia Strategy in China. He took up his post in Beijing in July 1999.

Already, he says, the strategy is bearing fruit. The most recent figures show that exports to China from Ireland increased by 104 per cent to $311.7 million in the first 10 months of 2000 compared to the same period in 1999.

And it has not been one-way traffic. Chinese imports into Ireland increased by 63 per cent to $275 million in the same period, representing a positive trade balance for Ireland. Quite an achievement given the comparative size of the two countries.

The achievements are all the more commendable given the small Irish staff working on the strategy in China. Apart from Mr Garvey and a secretary working from the Irish Embassy in Beijing, there are two executives, one in Shanghai and the other in Hong Kong.

"Other embassies have larger staff and offices spread throughout Asia," Mr Garvey points out. Enterprise Ireland's Paddy Delaney, based in Singapore, is the overall director of the Asia Strategy, while there are also offices in Japan, Kuala Lumper, and Australia.

One of the main focuses of the strategy in China is the third-level education sector. Apart from the money foreign students inject into the Irish economy, getting them into the Irish university system is important for future business contacts, says Mr Garvey.

"They live in Ireland for three or four years, build up relationships and an affinity with the country, and, hopefully, end up doing business in Ireland as well."

The timing is right for coaxing as many Chinese students as possible, with the numbers entering third-level colleges around the State falling. "So there is space for more foreign students," Mr Garvey points out.

Last year, 15 Irish third-level institutions took part in an education fair in China. Later this month, 19 third-level institutions will returning to China for an education show that will be visiting Beijing, Qingdao and Shanghai.

As part of efforts to promote the third-level college sector, the Sino-Irish Alumni Association has been established, chaired by Trinity College graduate Dr Hu Bo-Ping. He is now doing business with a company in Trinity. And during his visit in 1998 the Taoiseach launched a company founded by Irishman, Mr John McHugh, and a former college mate Dr Qian Wei, providing services to the Irish software sector.

"These are two positive examples of how the third-level system has resulted in concrete business connections," says Mr Garvey.

China's biggest interest in Ireland is in our flourishing software sector. "The Taoiseach's visit here was followed up last year by a visit to Ireland from Chinese vice-premier, Mr Li Lanqing. He concentrated on the software sector. When he went back to China, he spoke about Ireland being a model for how China should develop in this area.

"His report was circulated throughout China. As a result, we have had inquiries from all over the country from companies who want to bring delegations to Ireland. The visit of the Tanaiste, Ms Harney, last September cemented this interest and resulted in another huge burst of publicity. It accelerated what the vice-premier had done for us."

Baltimore Technologies and Iona are among the Irish software players in China. Engineering, construction services, environmental protection technology and aviation services and products are also sectors being pushed strongly by Mr Garvey and his colleagues.

While Mr Garvey is conscious that China's east coast is the main hub of economic activity, he is anxious that the Asia Strategy would spread its wings throughout this vast country.

"What we are trying to do bit by bit is to spread ourselves through all the regions to make contacts and to raise awareness. People in Ireland don't realise how big China is. Delegations who come to Ireland are from cities with populations of between six and 12 million and from provinces with populations of between 40 and 50 million. That's the size of France.

"Other countries have regional outpostings throughout China. I would hope that in time we would also get to that stage. It is a matter of resources. We have to create the business to justify new resources."

Last November, Enterprise Ireland hosted six Chinese delegations to Ireland in the space of two and a half weeks, with a total of 69 company representations. All with the exception of one were looking at what Ireland was doing in the software sector.

The Asia Strategy brought over six Chinese journalists during this period, including a television crew. Several reports were written for papers throughout China and state television, CCTV, featured a 30 second slot during prime time television with a viewership of 160 million people.

"We could not buy that publicity," Mr Garvey said. "That resulted in a huge number of additional inquiries."

Enterprise Ireland works closely with the Irish Ambassador in Beijing, Mr Declan Connolly, in developing closer business links between China and Ireland. The strategy also extends beyond the business sphere. The Minister for Arts, Culture, the Gaeltacht and the Islands, Ms de Valera, reached an agreement on cultural exchanges during her official visit to China two weeks ago.

Born in Birr, Co Offaly, Michael Garvey clearly loves Asia. He describes living in this part of the world as "an addiction".

"I left Ireland in 1983 when it was not a very dynamic place. I came to Asia, a region which was changing fast all the time, and I got bitten by the bug. There is an excitement about Asia and I have a fascination with its people and its culture."

He is now seeking to ensure that more and more Irish businesses share his positive experience of Asia.