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Cyprus, International Business Center for Chinese Companies to Invest
Cyprus has for a long time been an ideal business centre for foreign companies. Due to its strategic location and its favourable economic environment, Chinese companies can build a bridge, through Cyprus, to the West. China is one of the world’s fastest growing economies. Between 1993 and 2006 annual GDP growth reached 10% and if this continues, China is expected to become the world’s third largest economy. Furthermore the volume of Chinese exports to the EU is increasing impressively.
The EU is one of China’s main trading partners. Chinese companies can in fact benefit from the advantages that Cyprus’ market has to offer and therefore utilize the island as a base for direct investments and for supplying expanding markets in the region and the EU. The said benefits include the lowest corporate tax in the EU (10%), a transparent and stable legal framework, a liberal foreign direct investment regime that allows up to 100% foreign participation in most areas of the economy and modern and efficient legal, accounting and banking services.
Moreover Cyprus is an important shipping management center and one of the major transit trade centers in the Eastern Mediterranean. As a corollary, since 2004, when Cyprus joined the EU, the number of foreign registered companies has increased by over 20% per year.
In addition the trade volume between Cyprus and China for the year 2007 surpassed Half Billion Dollars. An indication of the increased interest of Chinese companies for investing in Cyprus is the success of the first Euro-China Business week, held in Nicosia, in November 2007, where more than 100 Chinese companies participated and demonstrated their products, new technologies and services.
Democritos Aristidou & Co. Law Firm @2008