Shannon Free Zone has been used as a model for Chinese economic zones, writes Mark Hennessy, Political Correspondent, in Shanghai
Chinese companies have been encouraged to set up operations in the Shannon Free Zone business park to supply the European Union and the United States.
Shannon Development was used by the Chinese government as the model for successful special economic zones in Guangdong and Fujian over the last 20 years following a visit by former president Jiang Zemin in 1980. The company has been frequently visited since by senior Chinese leaders, including the Prime Minister, Mr Wen Jiaboa, last year.
Shannon Development's chief executive, Mr Kevin Thompstone, yesterday said most countries saw China only as a low-cost manufacturing base.
However, he said, small Chinese companies would become "the Dells and Intels" of the future and would need to sell globally.
Shannon could offer "incubation space" for these companies now as they learnt to cope with selling in the EU and the US, supported by competitive corporation taxes, links with the University of Limerick and back-up support.
In 1999, the tiny US computer software company, Basis Communications, set up operations in Shannon before it was bought by Intel.
"Intel liked what they saw when they came to Shannon and Intel Communications (Europe) now has 100 engineers working in Shannon," Mr Thompstone told The Irish Times.
Yesterday he pitched Shannon's attractions to business people from Shanghai, Xiamen and Dalian, though he emphasised that it could take up to three years to see results.
"This isn't a market in which you can expect a fast turnaround, like the North American one. You must be long-term players here."
The mid-west region is already linked with Xiamen because the world's fastest- growing personal computer company, Dell Computers, has plants in both places. The University of Limerick was now proposing to train Xiamen-based Chinese Dell staff in Limerick, Mr Thompstone revealed.
Emphasising the importance of airports to the Dell-style business model, he said Shannon Airport was one of the few uncongested airports in Europe.
"In the 1970s, it was about competitiveness, in the 1980s it was about quality, in the 1990s it was about speed, today it is about agility," he told the Chinese business group. "We believe we can offer that to you."
Six hundred acres were available in Ballylongford, Co Kerry, on the Shannon estuary for deep-water berths for Chinese companies interested in shipping products in and out of Europe, he went on.
The presence of the Taoiseach and other senior ministers at the head of the week-long trade mission to China has been critical to its success, he said.
"The Dutch are here at the same time. One of them said that the big difference between the visits is that the Irish one was led by the country's prime minister. That makes a difference in China, where they see politicians giving an imprimatur to the business community," he said.
In Shanghai yesterday, the Taoiseach, Mr Ahern, said the opportunities offered by China were "enormous".
"They are prepared to be very helpful to us," he said. "Our colleges and universities already have good links. We have to build on these relationships."
Meanwhile, Trinity College Dublin has signed a deal with one of China's most prestigious colleges, Fudan University, which will see links being developed between their two law departments.