Economic and trade cooperation between China and Cyprus has continued to deepen with strong collaboration in the technology and energy sectors. With its geostrategic location, Cyprus also enjoys multiple advantages as a fulcrum country for China’s Belt and Road initiative, says Liu Yantao.
How would you describe the current state of bilateral relations between China and Cyprus?
Although geographically far apart, China and Cyprus, with similar views and shared interests, have fostered a profound friendship. The two countries have always attached great importance to the development of bilateral relations, setting a good example of equality between countries of different sizes, and mutual learning between different civilizations.
In 2021, on the 50th anniversary of the establishment of diplomatic relations, China and Cyprus officially announced a strategic partnership, injecting strong impetus into the development of bilateral relations. I have worked in Cyprus for four years, and fully felt the Cypriot people’s friendship for China and the Chinese people.
The political trust between China and Cyprus is rock-solid. The two countries have firmly supported each other’s core interests and major concerns. Cyprus firmly adheres to the One China Principle, and China continues to play a constructive role on the Cyprus issue. Also, economic and trade cooperation continues to deepen. The two countries signed an MOU on Belt and Road cooperation in 2019. Bilateral trade volume was close to US$1 billion in 2023, with Cyprus exports to China increasing by 11.4% year-on-year. Chinese companies have also strongly promoted Cyprus digital transformation and green development.
People-to-people and cultural exchanges are booming. Many major events have been held successfully, including the China-Cyprus Youth Exchange Week and the 3rd China-Cyprus Youth Forum, and the Nicosia Book Fest with China as the Country of Honor. The China-Cyprus Sister City Alliance was jointly established by more than 10 sister cities from both sides. In addition, there are frequent exchanges and visits between local governments, media, universities, youth and other groups. The people of the two countries are as close as brothers and sisters.
What significant projects in terms of infrastructure, trade, or investment partnerships are there between the two countries at the moment, and what kind of cooperation would you like to see developed in the future?
China-Cyprus economic and trade cooperation has continued to deepen in recent years. According to the Cyprus Statistical Service, China has been Cyprus’ third biggest trading partner and source of imports. In the first half of 2024, 139 Cypriot buyers participated in the 135th Canton Fair. Meanwhile, Cyprus representatives participated in the Country Exhibition of the Seventh China International Import Expo this year. They have also participated in the China International Fair for Trade in Services for four consecutive years. Through these platforms, they have promoted high-quality Cypriot products such as juice, beer, wine and cheese to Chinese consumers.
In terms of investment, Huawei, a well-known Chinese ICT company, has been operating in Cyprus since 2009, with a commitment to digital transformation and cultivation of ICT talents in Cyprus. It helped Cyprus become the first country in the EU to achieve 100% 5G coverage in 2022, with mobile network speed among the fastest in the EU. OUTFIT 7, a subsidiary of Zhejiang Jinke Tom Culture Industry Co Ltd, set up its headquarters in Limassol, with a focus on video game development. Its popular games have seen 24 billion downloads worldwide, injecting energy to the development of Cypriot ICT industry.
In terms of infrastructure, the project of 260MW Combined Cycle Power Plant, which may generate electricity with both natural gas and diesel, is being built by Harbin Electric International Company Limited. It is expected to be in full operation by the end of 2025, supporting energy transformation and electricity price reduction in Cyprus. Regarding the Vasiliko LNG project, the handover of FSRU vessel is expected to be realised in the near future.
Going forward, we encourage more Chinese companies to develop business in Cyprus and expand cooperation with the East Mediterranean region and the EU. We also welcome more Cypriot companies to engage in economic and trade cooperation with China. It is hoped that two countries will have closer cooperation in digital economy, green energy and infrastructure in the future.
What key opportunities do you see for Chinese business and investment in Cyprus, and how can Cyprus contribute to China’s broader economic and trade goals in Europe and the East Mediterranean?
Cyprus is committed to building itself into a financial and technological hub in the East Mediterranean, with booming tourism and shipping industries. It is attracting investors from all over the world with a comprehensive legal system and an attractive tax regime. We will encourage more Chinese companies to invest in Cyprus. At the same time, Cyprus boasts rich solar energy resources and is vigorously developing renewable energy. China, as the world’s leading manufacturer of solar panel and battery, is spearheading world energy development. The two countries are expected to further deepen cooperation in the development and utilisation of renewable energy for win-win results.
China and the EU are each other’s important trading partners. Cyprus, as an EU country, is expected to further play its positive role in driving China-EU economic cooperation and trade and help the two sides deepen mutual trust and understanding, complement each other’s strengths, and achieve win-win results. China maintains good economic and trade relations with many countries in the East Mediterranean. It is hoped that Cyprus will fully play its role as a regional hub to promote trilateral cooperation among China, Cyprus and other regional countries.
Cyprus lies in a strategic position at the crossroads of Europe, Asia, and Africa. How do you see Cyprus playing a role in the Belt and Road Initiative?
In 2013, President Xi Jinping put forward the Belt and Road Initiative (BRI), known as the Silk Road Economic Belt and the 21st Century Maritime Silk Road. Since then, Belt and Road cooperation has made historic achievements, benefiting over 150 countries and over 30 international organisations. It has opened a path of cooperation, opportunity and prosperity leading to common development, and become the largest international cooperation platform in the world.
At the opening ceremony of the third Belt and Road Forum for International Cooperation in October 2023, President Xi Jinping announced eight major measures that China will take to support high-quality Belt and Road cooperation. Over the past year, these eight measures, including building a multidimensional connectivity network and supporting an open world economy, have been advanced in a steady and fruitful manner, ensuring a good start for Belt and Road cooperation in the second decade since its inception.
Cyprus has an advantageous geographical location and traditional friendship with China. There is huge potential cooperation for the two countries. Cyprus is the 11th largest flag state in the world, and the third largest in the EU. It is also the largest ship management centre in the EU. In this context, Cyprus enjoys multiple advantages as a fulcrum country for Belt and Road cooperation. Going forward, China is willing to work with Cyprus to promote the integration of the port, shipping, and trade services within Silk Road maritime cooperation and aviation connectivity, to further unleash the cooperation momentum in the East Mediterranean, and advance high-quality Belt and Road cooperation.
How do you see the relationship and diplomatic ties of the two countries developing in the future?
China regards Cyprus as a reliable friend and strategic partner. Looking ahead, China hopes to work with Cyprus to continue to intensify high-level exchanges and multi-level dialogue, deepen practical cooperation and people-to-people and cultural exchanges, and promote the sustained, stable and healthy development of China-Cyprus relations.
A review of the more than 50 years of diplomatic relations reveals that for China and Cyprus, firmly supporting each other’s core interests and major concerns, such as sovereignty and territorial integrity, has always been the political foundation of bilateral ties; equality, mutual learning in the cultural field, and mutual understanding has always been the defining feature of this relationship; and constantly deepening mutually beneficial cooperation represents the shared aspirations and meets the fundamental interests of the two peoples.
Going forward, China is ready to work with Cyprus to continuously consolidate the achievements of the strategic partnership, and jointly promote the purposes and principles of the UN Charter and the spirit of international law. Our two countries are expected to further cement the political, interest and perceptual foundation underlying bilateral ties, and work together to build a community with a shared future for mankind.
