- April 30, 2020
- Posted by: admin
- Category: Blog
With its population of 1.4 billion and a gross domestic product (GDP) of $ 10.5 trillion, China has steadily increased in the world economy over the past 20 years and has become the largest power after the USA. Economic relations between China and Turkey are increasing every day.
Finally Yavuz Sultan Selim Bridge and the North Marmara Motorway from 51 percent of sales agenda with the Chinese consortium of Chinese investment in Turkey has exceeded $ 2.6 billion in 2019.
With the introduction of the new era of China as well Belt Road project in direct investments in Turkey it is expected to reach $ 4 billion. The areas where Chinese companies are likely to invest are listed as infrastructure, industry and technology.
The foreign trade volume between Turkey and China amounted to about $ 20 billion in 2019. However, China has an overwhelming advantage in mutual trade.
Exports to China in 2019 amounted to $ 2.5 billion, while imports exceeded $ 17 billion. This unbalanced picture is tried to be compensated by trade agreements made in recent years.
Especially the Chinese capital to Turkey last few years, an important step was thrown through direct investments. This investment process started in 2015 with the purchase of 24.5 percent of Tekstilbank by the Industry and Trade Bank of China (ICBC).
In the following years, Fina and Kumport ports continued with the acquisition of Demirer Kablo, Netaş Telekom, Boyracı İnşaat and Trendyol by Chinese companies at certain rates.
Finally, in the last days of 2019, it was revealed that the majority share of Yavuz Sultan Selim Bridge and North Marmara Motorway was purchased by a Chinese consortium.
Such development lead the Chinese entrepreneur to establish a company in Turkey.
China Consul General Cui Wei, says they expect to exceed $ 4 billion by the end of 2020. Investment in Turkey with the parties noted that they are open to cooperation in all areas. Wei declared that, “China is a country with all the skill in manufacturing”
Such motivation of the Wei, attracted businessmen in China to establish a company in Turkey.
Turkey EY Corporate Finance Partner İlhami Aries, explains that in China a serious accumulation of reserves that performs a rapid growth based on exports over the past 30 years.
Koç says that with the slowdown in the growth in the Chinese economy, the funds accumulated have begun to be turned into investments in foreign markets. Belt Road in connection with China’s interest in the project in Turkey will also record all kinds of infrastructure investments.
“China is in an almost unrivaled position as a country that not only develops the project, does the construction, but can also provide the high financing required by these projects,” says Koç.
Stating that another area that draws the attention of China is production, Koç states that the strategic position of our country provides logistics advantages in production and that we think we will see more Chinese investors especially in the field of technology.
However, “establishing a company in Turkey by Chinese people” is an ambiguity for the investors.
The relations between the Chinese business world and the Turkish business world are increasing day by day. Finally, late last month in Istanbul TUSIAD and Friendship Group in cooperation with China’s Shaanxi Province from Turkey visiting senior government and with the participation of the resulting delegation of business representatives ‘Turkey-China Business Forum’ was held.
Activities Fudan in China Mobile and EKI Energy Holding AŞ Kalli Group as well as from Turkey and Shaanxi signed a cooperation agreement between Turkey and the Globenuts Invest Group.
TÜSİAD Member and Friendship Group President Mehmet Avcı points out that China has become a model for many countries with its economic performance in the last 10 years.
Hunter, “Turkey, China, North Africa, Europe, Middle East and countries in the most appropriate location to be opened base in the Caucasus. In this sense, many Chinese companies, we hope the second center to take place in Turkey, “he said.
Noting that China and Turkey together many projects can be implemented Mehmet Avci, as sourced from the geographical position of our country is an extraordinary geopolitical power with the states.
The Belt Road project, which was launched under the leadership of China and aimed at reviving the historical Silk Road, marks an important change in world trade with its 11 thousand km railway line starting from Beijing to London.
Turkey’s Central Corridor Initiative ‘with this as part of the project has already provided significant logistical advantage.
In addition, now Turkish Airlines (THY) organizes seven flights a week to Beijing, Guanco and Shanghai points in China and six times a week to Hong Kong. Meanwhile, the number of tourists also helped the development of relations with China and a 60 percent increase in the number of tourists from China to Turkey exceeded 500 thousand in 2019.
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