Frendo to lead trade delegation to China

Accompanied by a trade delegation, Foreign Minister Michael Frendo will visit China in early summer, with the exact dates still under negotiation.

In a keynote speech to the Joint Conference on China-Malta Relations in St Julian's on February 23 (organised by the Ministry of Foreign Affairs and the Chinese Embassy) Dr Frendo stated that the seventh session of the Sino-Maltese Joint Commission on Economic Affairs would meet in Beijing during his visit - timed to commemorate the 35th anniversary of the establishment of bilateral diplomatic relations.

"China is a growing import source for many Maltese traders - in 2006 imports totalled Lm44.7 million, while exports reached Lm22.9 million," he said. "There are also good opportunities for the Chinese businessman to invest in Malta, particularly in the IT sector, and particularly with an eye on penetrating third-country markets - possibly together with Maltese operators - in our surrounding regions."

Dr Frendo paid tribute to outgoing Chinese ambassador Liu Zhengxiu for his contribution to the extension and development of the mutual relationship.

In his speech, Ambassador Liu indicated that bilateral trade in 2006 had increased by 53% over 2005, and was 20 times above the 1996 level.

"Our imports from Malta are mainly chips made by ST, while our exports are transferring from labour-intensive products like textile, garment, footwear, home appliance, daily necessities to electric machinery and high-tech products.

"Haier conditioners, King Long buses, heavy-duty port machineries and Lifan motors have settled down in Malta. X-ray scanners for containers, telecommunications and other high-tech products are also being promoted."

Chinese investment projects or joint ventures in Malta included Leisure Clothing factory, China Shipping Malta company, Linkyarn Cashmere company and Datong Foodstuff company.

"Malta has 35 investment projects in China," the ambassador reported, "with a contract value nearly $30 million (Lm9.9 million)". Malta's favourable investment conditions offered to foreign investors, pharmaceuticals, electronics, telecommunications, software, as well its forthcoming adoption of the euro and the Schengen visa offered further prospects for increased Chinese business activities here.

Malta's ambassador to China, Karl Xuereb, stated that with a gross domestic product of $2.68 trillion (Lm880 billion), the Chinese economy was the fourth largest in the world, accounting for 53% of Asian and 28% of world growth since 1995.

"China today produces 90% of the world's underwear, 50% of the world's computers, 50% of the world's cameras, and 90% of world's toys," he said.

The per capita income of $1,703 (Lm559) is expected to grow to $2,400 (Lm788) by 2010, while 520 million of China's 1.3 billion people already had an income over $4,000 (Lm1,314) and there were an estimated 2.5 million private entrepreneurs.

Bank of Valletta chairman Roderick Chalmers contrasted his first experience of China in 1984 with the extraordinary drive, entrepreneurship and modernisation encountered today.

For example, IPOs in the government-controlled banking sector raised US$30 billion of capital last year.

Leslie Vella, director, Marketing Support and Development, Malta Tourism Authority, said that about 2,000 Chinese visited Malta last year, out of the one million travelling to Europe, mainly to France and Italy.

MTA's marketing activities in China since 2001 should be seen as a 'long term investment', and were complemented more recently by joint promotions with Italy, Tunisia and Cyprus.