Editorial

Unrest in North Africa and the Middle East has been eclipsing other important developments. One that did manage to rise to the top of news schedules, however, was the overtaking of Japan by China as the world’s second largest economy. China led the world out of last year’s global recession with an economy that is calculated to be more than 90 times bigger than when leader Deng Xiaoping ditched hard-line Communist policies in favour of free-market reforms in 1978. The country is now expected to overtake the United States as the world’s largest economy by 2027.

Where does Malta fit in? Nowhere, but is it not somewhat extraordinary that, despite the very good relations the island has had with that country for 39 years and the good number of agreements signed over the years, it has not managed to build a modest level of economic and trade relations with that country? Even though China has its own problems, it is hard to believe Malta has been so unsuccessful in the bid to exploit the goodwill the Chinese leadership obviously has towards the island. This goodwill saw its beginning with the visit to that country by socialist Prime Minister Dom Mintoff way back in 1972. Many, including The Times, had looked at Mr Mintoff’s visit to China at the time with a great deal of circumspection, coming as it did soon after his government had renegotiated the 1964 defence agreement with Britain.

China had then not yet started to emerge from its international isolation and the establishment of diplomatic relations sowed the seeds of friendship that has remained constantly steady. As it happens, only the other day, Chinese President Hu Jintao had occasion to comment on these relations when he received the diplomatic credentials of Malta’s new ambassador to China, Joseph Cassar. He said the long-standing relationship between the two countries was in “excellent health”.

Still, praiseworthy as such good relations are in the context of diplomacy and even at people-to-people level, it remains a great pity Malta has not taken full advantage of this to boost its economic and trade relations with that country. China had helped this island build a dock and the port in Marsaxlokk in the years after the establishment of diplomatic relations, both of which served, and still do, a good purpose. But a string of very small Chinese firms did not have a long life and there has not been any significant Chinese investment over the years. There is only one Chinese manufacturing firm of some note; it makes clothing and employs about 200 workers.

Trade may have increased, as the Chinese President remarked, but it is still at a low level and only a fraction of Chinese tourists visiting Europe cross over to Malta. Can all this be reversed? It probably can and there are now indications things are finally moving in the right direction.

A Maltese-Chinese Chamber of Commerce has been set up and Malta Enterprise recently appointed its own man there. It has also signed a memorandum of understanding with the International Investment Association of Shanghai in an effort to encourage Chinese businesses and investors to use Malta as a hub to expand their businesses in Europe and the Mediterranean. This may sound a somewhat lofty idea and maybe more Malta Enterprise people are needed on the ground in China but, at least, there seems to be a new effort to get things moving.