More Chinese firms targeting research

CHINESE COMPANIES are increasingly moving into research and innovation and away from the traditional "Made in China" manufacturing, according to Liam Casey, founder of PCH International.

Addressing an Ireland-China Association business breakfast in Dublin's RDS, the winner of the 2007 Ernst & Young Entrepreneur of the Year said China was "one of the most creative and innovative places on the planet" and that other Asian countries "simply cannot compete".

Asked about the impact of international criticism of China over its handling of Free Tibet demonstrations and the protests surrounding the Olympic torch relay, he replied the negative publicity was boosting government support among the Chinese.

"The majority of people in China today care about business. They are so focused on being successful and there is a huge positivity. That is why when they hear all the negative stuff and China bashing, it results in huge support for the government."

He said a reference by Green Party leader and Minister for the Environment John Gormley to Tibet as a country had passed unnoticed in China.

Mr Casey said his supply chain management company PCH, which is Ireland's biggest exporter out of China, had sales of $120 million (€76.5 million) last year.

Gus Jones, director of the IDA's China office, said Chinese companies have not been strong investors overseas but this was changing.

Earlier today the CSO released data showing that exports to China and Hong Kong rose 63 per cent to €235 million in January compared to the same month in 2007. Imports from China declined by 8 per cent to €378 million over the period.