Cyprus Speeds up to Exports to China Through the Platform of the CIIE

By Guo Yan

“The China International Import Expo （CIIE） provides an excellent platform for promoting trade openness as well as for strengthening international economic cooperation. 2021 marks Cyprus’ first year of participating in the CIIE，” when China’s Foreign Trade magazine interviewed Mr. Petros Petrou， Commercial Counsellor， Chief Representative of the Cyprus Trade Center in P.R. of China recently， he mentioned.

Petrou said that it was the first time that Cyprus participated physically with a national stand as well as with an online national pavilion. The participation aimed at demonstrating Cyprus’ achievements in trade， industry， tourism， investment， and culture.

The export of products from Cyprus to China has been increasing

Cyprus has established itself as a key regional trading hub and a transhipment centre， thanks to its advantageous geostrategic location at the crossroads of Europe， Asia and Africa. Petrou said that international trade is vital both for Cyprus and the global economy. Trade， deeply integrated in Cyprus’ DNA， has played a pivotal role in shaping the local economy and the country has cultivated long-lasting relationships with international export partners.

Cyprus’ domestic exports registered a remarkable increase during the last decade. Domestic exports of goods marked a growth of 122% in 2020 when compared to 2010. The main export commodities are industrial products of mineral origin， pharmaceutical products and raw and manufactured food products. According to Petrou’s introduction， data recorded a steady increase in exports in recent years and demonstrated the momentum and high level of Cypriot service providers. In particular， exports of services increased by 15% during the six-year period between 2015-2020. The main exported services are in sectors such as telecommunications， information services， travel， transport and finance.

December 2021 marked the 50th anniversary of the establishment of diplomatic relations between Cyprus and China. Petrou thought that during all this time and despite our vast geographical distance， our two countries have managed to work together steadily strengthening bilateral ties and cooperation in all areas， political， social and economic. Especially our two countries’ economic and trade ties have steadily become stronger in recent years， yielding positive outcomes. As nations that share common characteristics and principles， we have also come to enjoy increased people-to-people contacts and exchanges.

Nowadays， China is Cyprus’ fifth trading partner in the world. According to statistics from Cyprus， total exports of products from Cyprus to China marked an increase of 102% during the last five years （2016-2020）. Total trade of goods between China and Cyprus reached EUR 537 million in 2020 and China was the fifth largest trading partner for Cyprus. In the same year， exports of Cypriot domestic products to China reached EUR 19.5 million and re-exports reached EUR 67.8 million， marking a remarkable increase of 1，204% in comparison to 2019. Imports to Cyprus from China reached EUR 450 million in 2020， for an increase of 20.3% compared to 2019.

“The CIIE has become a major platform to explore and expand in China. Despite logistical and other hurdles posed by COVID-19， the fair is expected to see broad participation and major business contacts. CIIE is a unique platform for strengthening our bilateral trade relations in a mutually beneficial manner，” Petrou mentioned.

The foundations for stronger engagement between Cyprus and China are definitely present. Perou said：“This is true for many policy areas and especially trade； even more so in the post-pandemic era where intensified efforts are needed to overcome the various challenges and move forward with a positive agenda.”

In order to further enhance trade and investment flows between our countries， as well as promote the penetration of Cyprus’ products and services in the Chinese market， the Government of Cyprus appointed recently a Commercial Counselor in Beijing.

Great potential in the fields of sustainable industries

On October 15， 2021， the government of Cyprus released a new strategy aiming to attract the global enterprises in the fields of high-tech ， research and innovation to invest in Cyprus.

Cyprus has a long-lasting reputation as a solid international business centre and its professional services sector has become a key economic pillar for the island. Petrou said that the latter maintains a number of competitive advantages that include： a business-friendly environment， a common law based legal system and strong investment and intellectual property protection. Additionally， Cyprus offers incentives for investment in start-ups and tailor-made provisions for industries such as shipping， investment funds， filming etc.

In 2020， China and the E.U. signed an agreement between China and the E.U. on cooperation and protection of geographical indications.

Petrou said： “To protect the heritage of the traditional cheese of Cyprus named Halloumi， we have achieved its classification as an E.U. Protected Designation of Origin（PDO）， which could further boost the brand appeal of the product， whereas the word ‘Halloumi’ is now registered in a vast number of countries either as a Certification Mark or as a Collective Mark. In addition to the above， the Government of Cyprus is also in the process of registering new certification and collective marks in other jurisdictions， including China.” he thought that this would further boost the trade relationships between the two countries as many Cypriot producers will have the opportunity to safely promote Halloumi cheese in China.

Not just in the perspective of trade， but also in the fields of technology and energy， Cyprus and China have developed deeper cooperation. Petrou said： “Our two countries economic and trade ties have steadily become stronger in recent years， yielding positive outcomes. Bilateral trade in products and services is flourishing and bilateral investments have maintained a positive development throughout the years.”

In 2015， Cyprus and China signed an Agreement for cooperation in science， technology and innovation， aiming at encouraging， developing and facilitating cooperative activities in these fields. Such activities may include joint research， development and innovation projects and the exchange of information and visits by scientists， technical experts and officials. A joint Steering Committee has been established to this effect.

Cyprus will plan to promote series of implementation. According to Petou’s introduction， the transition to a circular economy and green energy is a crucial element built into all our funding programmes （co-funded by the EU） for businesses， industry and homes， which total EUR 547 million for 2021-27.

Petrou introduced the progress of the green energy： “Renewable Energy Sources （RES） installations in Cyprus have increased significantly in the last few years， especially in the electricity and the heating and cooling sectors. A significant number of photovoltaic systems already installed in Cyprus， use equipment imported from China， including photovoltaic and solar panels， inverters， electrical protective devices， etc.， and we are confident that the demand for such products will grow in the next few years.”

Moreover， as a possessor of technology and a producer of RES systems for electricity generation and heating and cooling， China could offer Cyprus knowledge and support regarding new RES technologies， by optimizing existing systems， including energy storage and high-efficiency heat pumps. Petrou suggested： “China can also assist Cyprus in our goal to prepare and implement a comprehensive strategy regarding electromobility.”