PCH founder heralds Chinese innovation

Chinese companies are increasingly moving into research and innovation and away from the traditional ‘Made in China’ manufacturing, according to Liam Casey, founder of PCH International.

Addressing an Ireland-China Association business breakfast in Dublin's RDS this morning, the winner of the 2007 Ernst & Young Entrepreneur of the Year said China was "one of the most creative and innovative places on the planet" and that other Asian countries "simply cannot compete".

Asked about the impact of international criticism of China over its handling of Free Tibet demonstrations and the protests surrounding the Olympic torch relay, he replied the negative publicity was boosting government support among the Chinese.

"The majority of people in China today care about business. They are so focused on being successful and there is a huge positivity. That is why when they hear all the negative stuff and China bashing, it results in huge support for the government."

He said a reference by Green Party leader and Minister for the Environment John Gormley to Tibet as a country that had passed unnoticed in China.

"I was [in China] at the time and the only calls I got were from people here. I don't think Ireland is on the radar in China. I don't think they are watching out for what Ireland is saying because we are too small," he said.

Mr Casey said his supply chain management company PCH, which is Ireland's biggest exporter out of China, had sales of $120 million last year.

"In China you can do in one day what would take ten days somewhere else. From our base in Shenzhen we can take an order and deliver to our customers in the US in two days". The company employs 800 people in nine countries including Ireland and China.

Gus Jones, director of the IDA's China office told the  that Chinese companies have not been strong investors overseas but this was changing.

"Historically, China's main interest overseas was to secure natural resources but that is changing. What we say to Chinese companies is that if they want to be a success in Europe they have to be present there."

However, because China's population is so big and Ireland 's population is similar to that of a region in Shanghai "you don't tell Chinese companies about the size of Ireland. You tell them about the size of the European market and suggest Ireland as a base," he said. 

Deirdre Walsh of ChinaGreen said Minister Gormley's comments had been embarrassing for the Chinese.

"To embarrass is never a good idea. We believe in freedom of speech but there is a lot of negative comment about China at the moment and not a lot of positive comment on the pride and achievement of the Chinese."

She said many Chinese people were angry about the 'China bashing' at a time when the country was trying to prepare for the Olympics.

Earlier today the CSO released data showing that exports to China and Hong Kong rose 63 per cent to €235 million in January compared to the same month in 2007. Imports from China declined by 8 per cent to €378 million over the period.