Janice R. Andrews
During his visit to Dublin on Wednesday, Chinese Premier Li Qiang highlighted the tight economic and trade relations between China and Ireland, presenting their partnership as an example of amicable collaboration.
During the conversation with Ireland’s Taoiseach Leo Varadkar, the topic of preserving close connections despite mounting global tensions was discussed.
Ireland has become a poster child for the advantages of friendly relations with Beijing thanks to its chip exports and its status as a major target for Chinese investment. However, Ireland is now in a precarious economic situation due to recent difficulties, such as a drop in exports and growing US pressure to restrict technology transfers to China.
Li is expected to use his visit—which is his only one outside of Switzerland following the World Economic Forum in Davos—to persuade Ireland to maintain its strong connections with China. Even while Dublin supports the EU’s “de-risking” strategy towards China, compared to certain other members, Ireland is seen as being more receptive to positive relations.
Li mentioned that China and Ireland are commemorating 45 years of diplomatic ties and are “setting a good example of friendly coexistence and win-win cooperation.” The visit highlights China’s theme of maintaining relations across the globe.
Investigating Ireland’s position on the more general geopolitical problem of tensions between the US and China is another opportunity presented by the trip. Li’s talks may have an impact on discussions on how the EU handles this tricky circumstance.
Ireland’s importance in the semiconductor sector is highlighted by the fact that integrated circuits make up almost 60% of its exports to China. The situation is made more complex by US limits on advanced semiconductor exports to China and Ireland’s role as a venue for US-China competition.
Li’s visit is also perceived as a response to China’s worries over Irish legislation strengthening controls on exports with possible military applications and investments posing security risks, as well as US pressure on Intel.
In addition to promoting commerce, the tour aims to highlight Ireland as a point of entry for Chinese enterprises looking to enter the EU market. China hopes to show off the advantages of trade with Ireland in response to worries that protectionism against China could result from the EU’s de-risking approach.
Chinese corporations, such as Huawei, TikTok, WuXi Biologics, and PDD Holdings, have been investing more in Ireland, a country that has historically served as a base for US companies. This visit is viewed as a chance to present Ireland to Chinese businesses as a tactical way to enter the EU market.
The diplomatic atmosphere is upbeat as Li wraps up his visit, highlighting the two countries’ robust economic and investment ties. Positive momentum has been added to the talks by China easing its ban on Irish cattle, demonstrating the possibility of diplomatic dialogue as a means of resolving trade-related disputes.
