Economy minister Franz Fayot (LSAP) opened the event with a review of the common history between Luxembourg and China dating back to the 19th century when Luxembourg steel engineer Eugène Ruppert and other Luxembourg engineers worked on the first blast furnace in China at the Hanyang iron and steel works in Wuhan. The New year celebration was described as a phenomenal given that it coincided with the 50th anniversary of relations between Luxembourg and China.
“Celebrations are in order,” said Fayot, who described the economic and financial relations as “solid”.
This relationship has since resulted in several investments and business collaborations by players from both countries who have established subsidiaries across borders. In the financial sector, he underscored the close collaborations in green finance, specifically the partnerships between the Luxembourg Stock exchange and Chinese exchanges and financial institutions, adding that collaborations in the logistics and automotive sectors have developed very well in recent years.
“China is today one of the main markets and drivers for growth for our national carrier Cargolux,” he said, adding that the carrier serves China 60 times a week.
“Today, we are seeing Chinese startups and prominent fintech companies find their way to Luxembourg, and we have become the favourite gateway to Europe for Chinese financial institutions,” Fayot added.
Non-business ties in culture, sports, higher education and the increasing number of Chinese nationals [almost 4000] choosing to make the grand duchy their home in recent years was also noted as an example of excellent cooperation between the countries.
Fayot’s speech was followed by several other interventions including remarks by Tourism minister Lex Delles (DP) and China’s ambassador to Luxembourg, Yang Xiaorong, who both reiterated the excellent relations between the two countries.
“In 2021 the China-Luxembourg relations survived the negative impact of the pandemic and maintained a strong dynamic,” Xiaorong said, while highlighting China’s economic growth despite the pandemic in 2021 with 8,1% GDP growth and 21,4% increase in overall Chinese exports. Import and export volumes between Luxembourg and China in 2021 resulted in $1.85bn. Likewise, Chinese (+112%) and Luxembourg (+36,2%) investments between both countries increased.
“The development [agenda] of China [which was mentioned by the Chinese President Xi Jinping at the World Economic Forum in Davos 2021], will result in new opportunities for the global economy and contribute to the post-pandemic recovery,” the ambassador added, and welcomed the presence of the Grand Duke Henri who met with the president Xi Jinping in Beijing on 6 February.
Chairman of the Luxembourg Chamber of Commerce, Luc Frieden, mentioned the enormous potential for the China Luxembourg cooperation, especially in finance, logistics, space, and health tech, and encouraged a relaunch of dialogue and improvement of investment agreements between China and the EU.
“Sanctions or military means are never better than diplomacy and trade,” Frieden said.
Xie Zhujun, president of Chinalux announced a series of upcoming cultural activities and business events on space, ESG, and insurance to mark the 50th anniversary of relations.
Jacques Bortuzzo, the vice president of Chinalux hosted the event, organised by the Luxembourg Chamber of Commerce, Chinalux, the China Culture Center, the Luxembourg Confucius Institute with the support of Euro-Asie.