THE ROLE OF MACAO AS AN ECONOMIC CO-OPERATION PLATFORM BETWEEN THE PEOPLE’S REPUBLIC OF CHINA AND COUNTRIES OF THE PORTUGUESE-SPEAKING WORLD

Macao’s role as an economic platform between China and Portuguese-speaking countries has further strengthened in recent years, and the city has currently become an important component in the promotion of multilateral business relations.

It is within this context that the Forum on Economic and Trade Co-operation Between China and Portuguese-speaking Countries was organised in 2003, with an aim of promoting trade relations with Angola, Brazil, Cape Verde, East Timor, Guinea Bissau, Mozambique and Portugal.

Over the years, Macao has been maintaining close relations with Portuguese-speaking countries and is today considered to be the only Chinese city to enjoy privileged relations with these countries, which spread across four Continents and represent more than 200 million people.

Portugal, a country with a population of 10 million, allows access to a market of 27 European countries and a population of 500 million.  The operating costs in Portugal are still relatively lower in Europe.

Brazil is a member of the Southern Common Market (Mercosur) and currently one of China’s largest economic partners. Mercosur is one of the biggest world economic alliances with an estimated population of 200 million.

Angola and Mozambique, members of the Southern African Development Community (SADC), are China’s major economic partners in Africa.  In particular, China has agreed with Angola in granting funding for reconstruction projects in the country.

Cape Verde is located in proximity to the European Union and West Africa.  China supports economic development in Cape Verde and Guinea Bissau and maintained good bilateral relations with the countries.

In recent year, China has been establishing economic relations with East Timor and provided support to reconstruction works and launched various funding projects.

Macao has been playing an active role in promoting mutual co-operation between China and Portuguese-speaking countries.  Statistics shown that trade between China and Portuguese-speaking countries has grown by 35% in 2007 and amounted to US$46.35 billion.

During the period from January to December 2007, trade between China and its principal partner, Brazil, rose by 46.4 % to a total of US$29.7 billion, followed by trade with Angola with an increase of 19.4 % to US$14.11 billion.  Trade with Portugal, the third largest trade partner, amounted to US$2.2 billion, which showed an increase of 29% over the same period in 2006.  Trade between China and Mozambique amounted to US$280 million, which marked a growth of 36.8%.

Between 2003 and 2006, trade between China and Portuguese-speaking countries grew more than two times to a total of US$34 billion at the end of 2006, a rise of 46.9% as compared to 2005.  Figures drawn up in 2007 indicated that trade between China and Portuguese-speaking countries is set to exceed the goal of US$50 billion outlined for 2009 in 2008.

Macao plays an important role in linking China with the Portuguese-speaking countries, a role that Chief Executive Edmund Ho has been promoting in his visits to Chinese provinces as well as government officials and businessmen in various countries including Portugal, Mozambique and Brazil.

Two ministerial conferences were held in 2003 and 2006 by the Forum in Macao to further strengthen Macao’s role as an economic platform between Portuguese-speaking countries and Chinese provinces.

During the 2nd Forum on Economic and Trade Co-operation Between China and Portuguese-speaking Countries held in 2006, delegates signed an Economic and Commercial Co-operation Action Plan for 2007 to 2009, which set out new areas for co-operation apart from trade, including tourism, transport, health, science and technology, culture and the news media.

At the 2006 Forum, delegates agreed unanimously on the active promotion of bilateral trade between and direct investment between China and Portuguese-speaking countries.  Targets were set on reaching a bilateral trade volume of US$45-50 billion in 2009 and at least double the figures of bilateral investments between China and Portuguese-speaking countries within 3 years from 2007 to 2009.

On the 4th General Meeting of the Permanent Secretariat for the Forum on Economic and Trade Co-operation Between China and Portuguese-speaking Countries held in May 2008,  the Permanent Secretariat expressed that China is currently seeking opportunities to work with Brazil and Portugal in granting support to Africa and East Timor. In addition, Macao can play an important role in assisting Portuguese-speaking countries to access Pan Pearl River Delta (PPRD), China’s most extensive regional economic alliance. Over 50 delegates attended the meeting from the governments of Angola, Brazil, Cape Verde, Mainland China, Macao, Mozambique, Portugal and East Timor.

In order to strengthen Macao’s liaison with Portuguese-speaking countries, the Macao International Trade and Investment Fair (MIF) is organised by IPIM annually to bring together enterprises and entrepreneurs around the world with those from China and Portuguese-speaking countries being the major participants of the event.