The Government will target attracting foreign direct investment from Chinese companies as a key part of its review of the Asia strategy, the Minister for Enterprise, Trade and Employment said yesterday.
Mr Micheál Martin said he and the Taoiseach, Mr Ahern, would speak to IDA Ireland when they returned from China about the possibility of setting up Ireland's first overseas investment office in China.
"It would be foolish not to strategically position ourselves for inward investment from China," he said. "As Chinese firms grow and the economy strengthens we want to position Ireland as a location for investment."
Mr Martin said he had spoken at a meeting this week to the Chinese Minister for Commerce, Mr Bo Xilai, about the Republic becoming a potential gateway for Chinese firms that want to do business in Europe.
At a briefing with Chinese and Irish media in Beijing yesterday, the Taoiseach also raised the issue of attracting foreign direct investment to the Republic from China.
"A number of Chinese firms are now making foreign direct investments and our hope is that we can get our fair share of that," said Mr Ahern, who emphasised the Republic's low corporate tax regime and the expertise in technology and software among its companies.
IDA Ireland made an exploratory trip to China last year but recently told The Irish Times that it had no immediate plans to establish a formal presence in the world's fastest growing economy.
However, Shannon Development, which pursues inward investment for the Shannon Free Zone and is represented on the current trade mission, said yesterday it was hoping to build on its existing links with China to attract inward investment to the Republic.
The Shannon Free Zone was one of the models that China followed when establishing its own special economic zones, which have become massive centres for inward investment that are helping to fuel the rapid growth of the Chinese economy.
Mr Kevin Thompstone, chief executive of Shannon Development, said the agency had signed an agreement with Xiamen city that would enable young Chinese firms to establish operations at its incubation centre in Limerick and for Shannon-based firms to receive similar opportunities in Xiamen.
"We also want Chinese firms to consider the Shannon Free Zone as a location from which they can target the rest of Europe for sales," said Mr Thompstone. Xiamen, which is in Fujian province in China, already has extensive links with Shannon as the Dell team in Limerick helped to set up Dell's new plant in the city. China is one of the world's biggest benefactors from foreign direct investment and attracted up to €45 billion in investment in 2004.
But as its economy grows Chinese companies are beginning to look overseas and establish operations to sell their products in Europe and the US. Last month the Chinese electronics company Lenovo acquired the personal computer division of the US technology firm IBM. The Chinese television manufacturer has also gained a foothold in Europe by acquiring the French firm Thomson.
The South China Morning Post reported yesterday that overseas investment by Chinese firms could reach €650 million this year.