Interview: China considered to be important economic, political partner for Cyprus: Minister

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Interview: China considered to be important economic, political partner for Cyprus: Minister

(Xinhua) 09:49, October 27, 2013

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NICOSIA, Oct. 26 -- China is a very important economic and political partner for Cyprus, and the latter is committed to enhancing bilateral relations in all sectors, Cypriot Energy, Commerce, Industry and Tourism Minister Yiorgos Lakkotrypis said.

In an exclusive interview with Xinhua before departing for China for a visit, Lakkotrypis said there is always room for enhancing business and investment cooperation between the two countries.

He said Cyprus is attractive to companies that are expanding and looking for a European base, as well as to individuals who are looking for a holiday residence in Europe and at the same time obtaining the permanent resident permit.

According to a regulation by the Cypriot government, people from third countries including Chinese are allowed to get Cyprus permanent resident permit if they buy a property which costs more than 300,000 euros.

Lakkotrypis said Cyprus is aiming to develop a number of projects and sectors which the Chinese companies may have interest, including hydrocarbon exploration and production, renewable energy and large scale development projects, such as hotel resorts, golf courses, marinas, and integrated casino resort.

The minister said Chinese enterprises could be vital to the recovery and growth of the Cypriot economy and the prospects for cooperation with their Cypriot counterparts can truly serve as a win-win situation.

Cyprus is suffering an unprecedented economic crisis since March this year when the government and Eurogroup reached a 10-billion-euro bailout agreement followed by severe austerity measures and rising unemployment rate.

"I therefore expect after my visit to China, a lot of Chinese organizations will be visiting Cyprus to review the options for collaboration first hand," he said.

Lakkotrypis believed Chinese entrepreneurs can use Cyprus as a reliable business center.

"Our island's strategic geographical location, the tax incentives available, the existence of the free trade zone, the excellent communications systems and the highly trained labor force, could be of great service to Chinese companies, facilitating their business with Europe, the Middle East and Africa," he said.

Cyprus is located in the eastern Mediterranean sea and enjoys a corporate tax of 12.5 percent, one of the lowest in European Union.

Cyprus is the destination for many tourists from Britain, Scandinavian countries, Greece and Russia, but not for Chinese tourists. As a minister for tourism, Lakkotrypis said he is aware of the situation.

The minister said considering the great potential that exists for tourist exchanges between the two countries, Cyprus is now actively trying to improve both accessibility and knowledge.

"Obviously, China is a large market and thus we need to approach it gradually," he said.

A rich gas deposits were discovered by American company Noble Energy in Cyprus exclusive economic zone. Asked about the cooperation with China in energy sector, Lakkotrypis said China is expected to become a important player in the Liquefied Natural Gas (LNG) market.

"As such, Cyprus would very much like to exploit the opportunities that exist in securing long term contracts for supplying Cyprus LNG to China. Moreover, Cyprus would welcome Chinese companies to participate in the upstream operations in our Exclusive Economic Zone," he said.