China's Foreign Minister visits Ireland, cites 'Shannon Experience' as model for deeper cooperation

China's Foreign Minister Wang Yi met with Irish Prime Minister Micheál Martin and Deputy Prime Minister Simon Harris in Dublin on Monday, reaffirming the strategic partnership between China and Ireland and highlighting new opportunities for collaboration. His visit follows Chinese Premier Li Qiang's trip to Ireland in January 2024, which focused on potential cooperation in green technologies and the digital economy.

'Shannon Experience' and China's economic reform

During his meetings, Wang Yi highlighted Ireland's 'Shannon Experience' and its role in inspiring China's economic reforms. Established in 1959, the Shannon Free Zone was one of the world's first special economic zones (SEZs), designed to attract foreign investment through tax incentives and streamlined regulations.

"The 'Shannon Experience' provided China with valuable insights when we launched our own economic reforms," Wang said. "China appreciates Ireland's active, pragmatic, and friendly policy towards China, and is willing to work with Ireland to implement the consensus reached by the leaders of the two countries, consolidate high-level mutual trust, expand high-level cooperation, and promote mutual benefit and reciprocity."

Expanding economic ties

China is Ireland's largest trading partner in the Asia-Pacific region, and Ireland is one of the few EU countries that maintain a trade surplus with China. Key Irish exports to China include pharmaceuticals, medical devices and agricultural products.

"Ireland has benefited from China's development, and China values Ireland as a trusted economic partner," Wang Yi said. "We should continue to expand our cooperation in trade, investment, and innovation."

Chinese investment in Ireland has been steadily growing, with Huawei, TikTok, Shein, and Temu all establishing major operations in the country. Huawei, which has operated in Ireland for two decades, is projected to contribute $4.7 billion to the Irish economy between 2024 and 2030.

Prime Minister Martin reaffirmed the strong ties between the two nations:

"China's modernization and accelerated green transformation have brought important opportunities to the world. Ireland attaches great importance to its relations with China and is willing to develop a closer partnership."

Navigating geopolitical tensions

Despite strong economic ties, Ireland faces challenges in balancing its relationship with China while aligning with EU policies and global trade dynamics.

Ireland was among the 10 EU nations that voted in favour of additional tariffs on Chinese electric vehicles last year. In response, China launched an investigation into imports of dairy products from the EU.

Ahead of their meeting, the Irish prime minister issued a statement reaffirming Ireland's commitment to fair and sustainable trade relations with China.

"Ireland wants to grow these ties sustainably, based on fair competition, across a wide range of sectors, including agri-food," Martin said.

Wang Yi, in turn, called for greater cooperation rather than confrontation:

"Both China and Ireland are firm defenders of multilateralism and free trade," he said. "Under the current circumstances, China is willing to work with Ireland and the EU in the spirit of equality and mutual respect, upholding the principles of openness, inclusiveness, and win-win cooperation to enhance dialogue, build trust, and resolve differences."

Another challenge on the horizon is the potential return of Donald Trump to the White House. As a key hub for American multinational companies in Europe, Ireland is closely watching how a new U.S. administration might impact its trade ties with China.

"At present, unilateralism and protectionism are on the rise," Martin said. "Ireland is willing to work with China to defend multilateralism, support free trade, maintain stable production and supply chains, and resolve disputes through dialogue. Ireland is also committed to playing a constructive role in promoting EU-China cooperation."