China's new European trade hub: An Irish town of 18,000
The Irish town of Athlone has approved a project that could bring as many as 400 Chinese businesses to Ireland. With China facing declining growth and Ireland mired in debt, both stand to benefit.
As China's government readies to buy up European infrastructure, a trade hub slated for the Irish midlands could prove a showcase for the world's second-largest economy in a struggling continent and provide much needed jobs in debt-addled Ireland.
In December, local authorities in the Irish town of Athlone gave the go-ahead to a trade hub that would give Chinese business an anchor in Europe. Backers say the 1.4 billion euro ($1.8 billion) project "will become the largest European source of Chinese-branded goods in Europe.” With the World Bank's growth forecast for China reduced, partially because of the reduction in European demand for Chinese goods, a revived Europe is in China's interest.
Meanwhile, Ireland is looking at 63 billion euros in bank debt and is mired in a deep recession. Although the country was edging toward growth earlier in 2011, by the third quarter of 2011 the government reported a 2 percent decline in national output.
The Athlone Institute of Technology hosts more than 200 Chinese students – one of the links that helped bring the trade hub to the town, says Prof. Ciaran Ó Catháin, the president of the school and one of the players in the project negotiations. Professor Ó Catháin would not disclose who the Chinese backers are, but says, “suffice to say there are significant players involved on the Chinese side." Plans for the project predict at least 400 Chinese businesses using the trade hub to launch their products in Europe.
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