The governor of the Mainland province of Guangdong, Huang Huahua, pledged he will visit the Portuguese speaking African states of Mozambique, Angola and Cape Verde during 2006 to strengthen economic and commercial relationships.
The announcement comes soon after a Macau company controlled by entrepreneur Stanley Ho signed an accord with Mozambican officials to attract Asian investment to the country's Zambezi River valley.
Geocapital Holdings was specifically set up to fund investment and development projects in the Community of Portuguese-Speaking Countries (CPLP).
Two years ago Beijing said Macau would be a vital link for trade between China and Lusophone countries around the world. Governor Huang repeated the pledge during a recent three-day visit to the SAR. Now the words may be turned into action.
Chinese Prime Minister Wen Jiabao called in December for a doubling of business activity between his country and Portugal over the next three years. He signed a string of accords covering judicial cooperation, health, reciprocal investment protection and cultural exchange during a short visit to Lisbon.
During the trip, Portugal was named as one of China's new strategic economic partners in Europe – a status until recently reserved only for the UK, France and Germany. Commercial ties between Lisbon and Beijing are relatively modest, but growing steadily. Total two-way trade in the first nine months of 2005 was worth about US$ 900 million (MOP 7.18 billion) according to official Chinese figures. Wen, heading a delegation of senior cabinet ministers and top executives, proposed that Portuguese and Chinese firms double their bilateral economic activity by 2009. Speaking in reply, Portuguese Prime Minister Jos? S?crates described his country's cooperation "in all economic fields" with China as "vital", adding that Lisbon looks towards Beijing with "much expectation". Bolstering political and diplomatic ties with China is a key goal of the Lisbon government, said S?crates, and the raising of Portugal to "strategic partner" is "a new moment in relations between the two nations, stamped by new (political) ambition", as well as a desire for closer economic and cultural ties. The Portuguese leader said he had accepted an invitation from Wen to visit Beijing and would do so early in 2006. Regular diplomatic contact is taking place between Lisbon and Beijing and China can rely on Portugal to act as an intermediary in its relations with the European Union, added S?crates. Wen's brief tour, which included meetings with President Jorge Sampaio and Parliament Speaker Jamie Gama, was the most high level visit to Portugal by a Chinese leader since Lisbon handed over the administration of Macau to Beijing in 1999.
Governor Huang also visited Portugal in 2004, resulting in sixty three cooperation agreements being signed between Portuguese and Guangdong companies. He said recently: "The practical results are still not very significant because we are in the initial phase of cooperation."
Huang believes however that Portugal can be an important partner for Guangdong's business community if it invests in "high technologies, agriculture, trade and services". He says the new links could also be used to promote exports from the province.
He also referred to the role of the two Special Administrative Regions (SARs) of Macau and Hong Kong in the development of the People's Republic, especially for the nine districts of the Pearl River Delta. Huang described the two SAR territories as "two entrance windows to China." He said: "Hong Kong is very important in the financial and export sectors while Macau is a centre of tourism, gaming and services – relevant areas in the development of trade and industry of the whole Pearl River Delta area."
Speaking of the Mountain Island development project, on the Mainland side of the border opposite Coloane Island, Huang said it was necessary "to wait for the State Council's authorisation and to study the project in the regional context".
Guangdong which has borders linked to Macau and Hong Kong – is one of the most developed provinces in China and is responsible for about one third of the whole country's trade.
In 2004, Guangdong attracted investments of about US$10 billion dollars (MOP 79.84 billion), 34 percent more than recorded in 2003 and about 25 percent of the total foreign investment done in China. The province has 87 million people and covers 177,000 square kilometers.
According to official data, in the first ten months of this year, its foreign trade increased 19.7 percent to US$340.72 billion (MOP 2.72 trillion).
"Guangdong's is the biggest regional economy in the whole country and since the country's reform and opening to the West 26 years ago, the success of its development is there for the whole world to see", declared Huang.
Its gross domestic product (GDP) has been averaging 13.4 per cent growth annually for the last 26 years and in 2004 GDP reached US$193 billion (MOP 1.54 trillion) – more than 10 per cent of the total for the whole of China.
In spite of the positive growth indices and the importance of Guangdong in the Chinese economy, Huang sees the need "to stimulate development in information technology and other high tech industries".
He added there was still room for growth in vehicle making and ship building to provide a transport infrastructure for traditional industries. At the same time it was necessary to put money into the oil and high tech sectors to diversify from traditional areas such as textiles, construction and food supplies".
Huang said Guangdong would continue to seek investment in new service industries as well as in the financial sector, insurance, real estate, conventions and logistics.