China and Portugal established diplomatic relations in 1979, entered into strategic cooperation in 1999, and upgraded the ties to a strategic partnership in 2005 and further to a comprehensive strategic partnership in 2014. Despite the resurgence of de-globalization and protectionism presently seen in the world, Portugal-China relations are at their best period in history; Portugal is a good friend and partner of China in the EU, and both countries create a vivid paradigm of economic complementarity and common development based on mutual political trust, openness, and inclusiveness.
Mutual Political Trust and Common Development
Both China and Portugal have attractive cultures, and the bilateral exchanges date back 500 years. In 1502, Portugal sent envoys to the Ming Dynasty. Chinese people and Portuguese people know about each other well. In the past four decades, particularly the last two decades, the two countries have seen rapid development of exchanges in fields including economy, finance, education, and culture. Impacted by the European debt crisis that broke out in 2011, Portugal saw a serious recession and even negative growth in its economy, with the unemployment rate and debt level constantly climbing. Portugal had to seek aid outside of the EU. As Portugal faced tightening fiscal budgets internally and financing difficulties externally, China extended a helping hand, which helped Portugal pull through the most difficult period. The incumbent Portuguese President Marcelo Rebelo de Sousa once said, “I do not hide my love for China.”
In 2017, Portugal reported an economic growth of 2.7%, the highest since 2000; the unemployment rate and fiscal deficit rate respectively dropped to 7.2% and 1.8%, the best levels since the European debt crisis. The friendly cooperation between China and Portugal vividly reflects the common interests of the two countries of different cultures, different histories, and different systems, seeking common ground while reserving differences and promoting understanding through exchanges, to jointly respond to the challenges facing mankind and build a community of shared future for mankind. At present, the world faces countless challenges under the international trade and governance frameworks. In the future, China and Portugal will further advance cooperation on economy and trade based on mutual political trust, and promote regional and global cooperation through common development, so as to jointly shape a more inclusive, prosperous, and beautiful future.
Fruitful Cooperation between China and Portugal on Economy and Trade
The economic and trade exchanges between China and Portugal have a long history. From as long ago as the early 16thcentury, Portuguese merchants came to China’s Guangzhou to exchange silverware, ivory, wool, and sandalwood for Chinese silk and porcelain. In recent years, in the spirit of openness, inclusiveness, mutual benefits, and win-win cooperation, both sides have joined hands to meet the global financial crisis, and achieved leapfrog development in their bilateral cooperation on economy, trade, and investment. This has not only driven the comprehensive development of the cooperation between the two countries in various fields, but also brought real benefits to the two peoples. According to data from China’s Customs, from January to September 2018, the trade between China and Portugal reached US$4.534 billion, up 7.6% year-on-year. On a specific term, China’s export to Portugal totaled US$2.806 billion, up 4.7% year-on-year, and its import from Portugal stood at US$1.728 billion, up 12.5% year-on-year. Portugal is the first EU country to officially establish the “blue partnership” with China. It is expected to become the first Eurozone country to issue RMB bonds in China, and will also become the first country to build a Luban Workshop with China on the European continent.
As the cooperation between China and Portugal progresses, both sides see huge potential in cooperation on strategic industries including finance, energy, transport, ports, and electric vehicles, and emerging industries including renewable energy, the digital economy, and the innovative economy. China and Portugal have maintained close exchanges in economy and trade in recent years, with the fields and layers of cooperation deepening year by year, and have increasingly formed a sustainable mode based on mutual benefits and win-win cooperation. China is Portugal’s biggest trade partner in Asia, and Portugal is China’s fifth largest destination of investment in Europe. According to incomplete statistics, China has invested more than EUR9 billion in Portugal, involving multiple fields such as energy, power, finance, insurance, and health care, producing notable economic and social benefits.
Sharing the Opportunities and Fruits of the “Belt and Road” Construction
Portugal is an ancient seafaring nation and the starting point of the ancient Maritime Silk Road in Europe, where a large number of navigators embarked and opened the sea route from Europe to China. Portugal vigorously supports China’s “Belt and Road” initiative, and was an important participant in the 1stBelt and Road Forum for International Cooperation held in Beijing. As one of the founding member states of the Asian Infrastructure Investment Bank, Portugal feels a natural kinship with and a great enthusiasm for the “Belt and Road” construction. Both the Portuguese President Marcelo Rebelo de Sousa and Prime Minister António Costa explicitly expressed the support for and the willingness to participate in the “Belt and Road” construction, in a bid to realize the effective connection between Portugal’s development strategy and the “Belt and Road” initiative, share the opportunities and fruits of the “Belt and Road” construction, deepen cooperation under the “Belt and Road” framework and establish a model for mutual benefit and win-win cooperation amid globalization.
Located at the westernmost tip of Eurasia, Portugal is a hot destination for investment by Chinese enterprises, an effective platform for the expansion of trilateral cooperation, an important participant in the “Belt and Road” construction, and a good friend and partner of China in the EU and multi-lateral diplomatic fields. The cooperation between China and Portugal under the “Belt and Road” framework has established a successful template for China-Europe cooperation. A large number of Chinese-funded enterprises, including State Grid, ZTE, Huawei, Fosun, China State Construction Engineering Corporation, China Three Gorges Corporation, and China Development Bank, have invested in Portugal. In particular, the cooperation between EDP and China Three Gorges Corporation has been upgraded constantly; the partnership and mature operation mode established between the two enterprises have become a model of cooperation between Chinese and Portuguese enterprises, and contributed to the economic development of Portugal. China and Portugal will further strengthen industrial cooperation, give full play to respective advantages, and expand the development of the digital economy and innovative economy in emerging fields, with the aim to enhance the competitiveness of the enterprises of both countries in the global market and inject new impetus to the pragmatic cooperation between China and Portugal.
