How a changing global climate is making Ireland the new outpost of China
Greetings from the People’s Republic of China. I am writing from the small town of Changshu, a modest canal-town of over 1 million inhabitants – insignificant by Chinese standards. Outside my window, countless towers and cranes dot the horizon, dimmed by the industrial smog. Changshu is a capillary in the thriving system of the Yangtze River Delta area, all circulating around the beating heart of Shanghai, a global economic bastion that numbers 24 million strong.
These are the first things to take into consideration when speaking of China: scale and speed. Day by day, new infrastructure projects – from high-speed rail to sanitation plants – are being built around the country, while a population of over 1 billion continues to rise from underdevelopment into the middle classes. Coming from the west of Ireland, and having seen little of the world, China has simply blown me away.
So why am I here? I was lucky enough to attain a scholarship to attend an international school in Changshu. Upon coming here, I began to wonder – how is the school allowed to be here? The “United World College” is a bastion of liberal and egalitarian ideals, designed to foster intercultural understanding and the upholding of democratic principles. The school even has an agreement with the government that we are allowed to use a foreign VPN to access sites that China has censored – as well as that, we are under no formal obligation to have Communist Party propaganda in our school (to be clear: it’s everywhere else).
The answer as to why we are here? It’s tactical.
Gather young people from all over the world to learn Chinese. Our presence alone contributes to the economy. As well as that, wealthy Chinese students attend this school to gain international links and learn English.
It may seem a far cry from the protectionist, closed-door policy of communism that many of us think of. Because it is. But it works.
Ever since the economic reforms in 1978, China’s economy has steadily grown by leaps and bounds. The second-largest economy on earth continues to rapidly modernise and transform, and as the world’s leading trade power has reshaped the economic playing field. This monumental growth, coupled with perceived expansionist and territorial tendencies, has led to growing unrest in the West. Beijing’s growing global links, coupled with geo-political tensions in Korea and the South China Sea, have resulted in the cooling of relations with a number of countries, most notably the United States. With increasing tariffs between the two superpowers in 2018, coupled with a battle of words between their governments, a dreaded “trade war” may well be upon us.
However, the United States is by no means China’s only economic outlet. On top of an unrivalled manufacturing industry, Chinese President Xi Jinping has made increasing Chinese “soft power” a priority, namely through his Belt and Road Initiative. This project aims to connect China and much of the world through investment and infrastructure. The initiative, along with other huge loan partnerships and investment projects, has seen Chinese influence spread far. Beijing’s focus on developing nations, both economically and politically, have led to accusations of neo-colonialism from the West, especially in regards to increasing ties with African nations.
Here is where Ireland steps in. Though not part of the Belt and Road initiative, it has seen monumental growth in Chinese relations in recent years. Trade between the two nations has more than doubled since 2013, in what has been estimated as €15 billion in 2017. This enlargement of relations was typified by Chinese approval to begin importing Irish beef, announced this year – lifting the former ban enforced because of food safety concerns. In 2017 alone, Ireland’s agri-food exports to China totalled at €974 million – an approximate increase of €774 million on 2010. China is now Ireland’s second-largest market for pork and dairy products. Demand for meat has skyrocketed in China – in a society with more opportunity for discretionary spending, the desire for variety and choice has become ever more apparent.
As well as this, an increasingly mobile and visible upper class in China is finding its footing in the world – and in Ireland. This is evident in the fact that Ireland ranks third place on the China Immigration Index, and is the fifth most popular country in which Chinese citizens are seeking citizenship and residency. This is through the Irish Immigrant Investor Programme, a residency by investment initiative. Through this, Chinese businessmen and investors are able to securely and easily live, reside in, or periodically visit Ireland. Of the 329 applicants of this scheme in 2016, 313 were Chinese citizens. This, combined with governmental initiative, illustrates the collectivism espoused by China, combined with a unique and strong-willed form of Asian Tiger economy entrepreneurship. These shrewd business skills are not always totally apparent, however; it was reported in 2017 that businessman Zhang Yuesheng had 76 racehorses, worth €2 million collectively, flown out of Shannon Airport to China.
Beyond agriculture, there is also a boost in technological and financial fields. WuXi Biologics, a pharmaceutical giant, has selected Dundalk as its location for its first facility outside of China. As well as this, a Chinese Trading Hub project, publicly announced in 2012, would see an expansive complex built in Athlone, along with mention of an international airport. This plan has stagnated in recent years, however nonetheless bears testimony to the scale of Chinese and Irish business.
China is a nation with complicated and demanding energy needs – the government has recognised the unsustainability of reliance on fossil-fuel energy, and has declared a new dedication to renewable energy and environmental sustainability. In Ireland, many wind-farms are financed or partly owned by Chinese companies and business tycoons. However, interest in fossil fuels has by no means ceased; there has been considerable Chinese interest in capitalising on the Barryroe oil field off the Cork coast.
So, we may ask the question? Why Ireland?
Firstly, the island nation can thank circumstance; with increasingly turbulent global relations, where protectionism and unilateralism is on the rise, outward-looking countries can and will fill the vacuum. China has successfully exploited this situation. Because of the turmoil surrounding Brexit, there is continuing interest in Ireland, now being the only “English-speaking country” in the European Union. Simon Coveney, Irish Minister for Foreign Affairs and Trade, said about the issue: “Ireland is ready to step into the gap created by Brexit, and wishes to replace Britain as China’s new ‘trusted friend’ in promoting Xi Jinping’s Belt and Road Initiative”. This is a major step for Ireland, a long-time ally of the United Kingdom, and represents the changing power dynamic in Europe and the world. Ireland’s relative prosperity and outward-looking attitude continues to benefit its economy, reflected in its annual GDP growth rates, some of the most notable in the world since the global recession.
Ireland has also been expanding diplomatically. The incumbent government will launch “the most ambitious renewal and expansion of Ireland’s international presence ever undertaken in terms of diplomacy, culture, business, overseas aid, tourism and trade” according to Taoiseach Leo Varadkar. Under the Global Ireland 2025 plan, the government plans to open 26 new embassies and consulates around the world.
Ireland continues to be a relatively easy and accommodating location for Chinese business. With a skilled workforce and developed infrastructure, along with an advantageous geo-political position, it evidently proves attractive to Chinese investment. However, some have speculated this may lead to over-saturation. As of now, US multinational corporations make up 14 of 20 top Irish firms by turnover; this may not be the case for much longer, with increasing incentivising elements in the US government to bring back corporations to American soil. Ireland’s immense reliance on foreign direct investment has been suggested as a risk, in a global environment of rapidly cooling international relations. Elements in Irish economic circles have vocalised the need to maintain open and dynamic relations with both East and West. All the while, the economic balance of the world looks uncertain, as nations such as China and India look set to overtake the West if current trends continue.
In an ever-changing world, where turbulence and tension are re-emerging as the norm, Ireland and China have proven adaptable and resourceful. Whatever the future may hold, it is sure to be one full of change and uncertainty, with one word hanging over us all – trade.
-Micheál Mac Gerailt
תגובות