Chinese investment expected to kick-start Irish economy after deal signed

Historic accord witnessed by Irish and Chinese leaders in Beijing

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Ireland's Prime Minister Enda Kenny

Photo by PHILIPPE WOJAZER

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Irish Prime Minister Enda Kenny has returned from China with the promise of billions of Euros worth of investment to follow.

The Chinese government has signed an accord with their Irish counterparts that allows for major trade between the two countries.

Kenny’s cabinet believe the deal, brokered during a four day official trip to Beijing and Shanghai, can attract the capital needed to kick-start the Irish economy’s recovery.

Already the China Investment Corporation has signed a special agreement with Ireland’s NTMA agency – which manages the national savings and sale of state assets.

CIC intends to invest heavily in Irish companies and state assets, a move that is set to create jobs and boost Ireland’s export figures.

“This agreement is very significant and an opportunity to examine all forms of investment. CIC will explore a very broad range of investments,” said Kenny ahead of his return to Ireland.

NTMA chief executive John Corrigan, who signed the deal with CIC International chairman Lou Jiwei in Beijing, believes the agreement will serve Ireland well.

He said: “We’ve been talking to them for a good while. So this is a sort of cementing of the relationship. I think we should be clapping ourselves on the back. It’s a major achievement to get to this stage.

“CIC has a very active bond desk. They invest right across the spectrum. Everything is a possibility.”

Irish PM Kenny, who witnessed the signing of the deal alongside Chinese President Wen Jiabao, said: “Clearly a country as economically powerful as China expressing an interest in being a partner to investment in Ireland is an important indicator in its own right.

“China understands that Ireland is now heading in the right direction.”

CIC was established in 2007 with $200bn of assets under its management, a figure which more than doubled over the next three years.
 

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