Agreement opens way for Chinese investment

TAOISEACH IN CHINA:THE PROSPECT of substantial Chinese investment in Ireland, possibly including the purchase of Irish State assets, has increased with the signing of an agreement between the National Treasury Management Agency and CIC International, a subsidiary of China's sovereign wealth fund.

Taoiseach Enda Kenny and Chinese premier Wen Jiabao were present at the signing of the memorandum of understanding in the Great Hall of the People in Beijing yesterday by NTMA chief executive John Corrigan and chairman Lou Jiwei of CIC International.

Mr Corrigan said the memorandum represented a major initiative for enhanced co-operation and engagement in areas of common interest.

As well as Mr Corrigan, the group travelling from the NTMA included economist Rossa White.

Newly appointed Department of Finance secretary general John Moran is also in China with the Taoiseach.

Mr Kenny told reporters the memorandum was among the items he discussed with Mr Wen. Asked if the sale of Irish State assets could be involved, he said: “This is an opportunity, really, to examine all forms of investment.

“I met the Chinese Investment Corporation myself last October when they were in Dublin: we discussed a broad range of issues [including] where there might be consideration for investment.

“There is nothing specific mentioned here, but it is a memorandum and an agreement signed between [the] NTMA and CIC to explore a very broad spectrum of possibilities for investment.”

Asked to assess the importance of the move, he said: “I think it’s very significant.” Asked if it would be pivotal in getting Ireland back into the bond market by the end of the year, Mr Kenny said: “Clearly a country as economically powerful as China expressing an interest in being a partner to investment in Ireland and [the fact] that an MOU has been signed to explore a very broad range of that possibility is an important indicator in its own right.

“But I think it’s also an indication, following vice-president Xi Jinping’s visit to Ireland, that China understands Ireland is now headed in the right direction; that Ireland is serious about its business.”

Boost to tourism as Kenny extends visa waiver; Goodbody signs placement deal with Chinese institutes: Business + Commercial Property, page 5