Download Economic Relations

TURKISH-CHINESE
RELATIONS
“When I arrived in Shanghai,
a city with a population of six
million, I felt like I was in one
of the most grandiose cities of
Europe...”
A Turkish traveller visiting
China, 1920
Background
During the Cold War:
As a member of NATO, Turkey was geostrategically located as a
buffer against possible threats from the Socialist Block.
Turkey’s economic and social concerns were entirely Western in
orientation.
“While WEST was the symbol of beauty, EAST was the Beast”
Post-Cold War:
Turkey as a “bridge connecting west with
the east.”
Background
Turkey’s foreign policy priorities:
European Union accession
Transatlantic structures
Role in the Middle East
Eurasia
Having these priorities does not necessarily mean that the AsiaPacific region should be neglected!
Turkey has to build adequate relations with the countries in the
region.
How does Turkey see China today?
A new superpower to establish balance?
Or a regional power far from us?
How does Turkey see China today?
An economic threat stealing our jobs?
Or a good business partner?
How does Turkey see China today?
A threat?
Or an opportunity?
Political Relations
Official contacts date from 1925. First Turkish diplomatic mission
opened in Nanjing in 1929.
Turkey recognised the People’s Republic of China on 5 August 1971.
Turkey adheres to the “One China” policy, recognising the People’s
Republic China as the sole legal representative of China.
Mutual trust
Respect for national sovereignty
Respect for territorial integrity
Non-interference in internal affairs
Similar views on international issues
No fundamental conflicts of interest
Political Relations
Separatism is a shared concern...
Struggle against terrorism draws China and Turkey together in the
post-September 11 environment.
Military ties are slowly growing, however currently limited to personnel
exchanges.
Political Relations
High level visits:
President:
December 1982:
Kenan Evren
March 1984:
Li Xiannian 李先念
May 1995:
Süleyman Demirel
April 2000:
Jiang Zemin 江泽民
Prime Minister:
July 1985:
Turgut Özal
July 1986:
Zhao Ziyang 赵紫阳
April 2002:
Zhu Rongji 朱镕基
Joint Comminiqué on Bilateral
Cooperation during Jiang
Zemin’s visit to Turkey in April
2000.
Political Relations
High level visits:
(January 2003:
Recep Tayyip Erdoğan
as the leader of the ruling party)
Minister of Foreign Affairs:
September 1990:
Qian Qichen 钱其琛
February 1998:
İsmail Cem
February 2001:
Tang Jiaxuan 唐家璇
February 2005:
Abdullah Gül
Economic Relations
“If we manage to sell one single orange to every
Chinese, we will get rich...” (1982)
Economic Relations
IRRATIONAL
RATIONAL
PRAGMATISM
PRAGMATISM
Myth of the huge market.
Benefiting from low costs.
Lack of knowlege.
Importing easier than
exporting.
Barriers against market entry.
Result: No win.
Lower barriers.
Result: Short term win.
LONG TERM
APPROACH
Multi-dimensional: Export,
import, investment.
Keyword: competitive
advantages complementing
each other.
Globally integrated Chinese
economy.
Result: Long term mutual
benefits.
Economic Relations
Economic Relations
Turkey is facing a rapidly increasing trade deficit against China.
Wrong question to ask: “Why are our imports so high?”
Correct question to ask: “Why are our exports so low?”
Turkey and China compete against each other in: textile, food, light
industry, etc.
Turkey’s entry into Chinese market has been primarily for “niche”
goods. Diversification is necessary.
Economic Relations
Wrong:
Protectionist measures only.
Pressure on China to buy more from us.
Make China a “scapegoat”.
Correct:
Identify the areas where Turkey’s competitive advantages match with
China’s changing conditions and requirements. Example: luxury items,
such as jewelry, construction materials.
Turn the “threats” into “opportunities” by adapting to the changing rules
of the game. Example: textiles.
Economic Relations
TURKISH INVESTMENTS IN CHINA
Çimtaş:
Engineering, steel construction. Factory in Ningbo.
Demirdöküm:
Heating systems. Factory in Dongguan Province.
Fabeks:
Silk and cashmere. Factory in Inner Mongolia.
Akman:
Beverages. JV factory in Yantai.
Atasay:
Jewelry. Temporary factory in Guangzhou.
Ünsa:
Polipropylene bags. Factory in Hangzhou.
Sabancı Holding to finalise the purchase of nylon factory in Qingdao.
Trading by Şişecam, Tema, Hipokrat, Goldaş and more.
Representative offices of Garanti Bankası and İş Bankası.
Investment by Bahçeşehir Educational Institutions.
Economic Relations
Investing in China:
Advantage of low costs.
Use China as a hub, export to third countries.
Entry to the Asia-Pacific region.
BUT: Investment should be a two-way road!
Attract Chinese investment to Turkey:
Support for Turkish exports.
Value added to local economies in form of tax revenues and
employment.
Road Map
Turkey needs a comprehensive “Asia-Pacific Strategy”,
covering not only the economic dimension, but also
political, social and cultural ones.
Government
NGOs
Academic
institutions
Private Sector
Road Map
Turks and Chinese have to learn and understand each
other better.
Perception of China in Turkey:
- Low priced goods.
- Mystical country.
- Martial arts movies.
Cultural programs.
- Chinese food.
Language learning.
Academic cooperation.
Encourage tourism!
Road Map
More high-level state visits.
- Good preparation before the visit.
- Follow up after the visit.
-To the point, with concrete items in the agenda.
- ACTION instead of TALK.
Road Map
Building bridges!
- Stronger representation (embassies, consulates, etc).
They should be improved both in quantity and quality.
- Student exchanges.
- Chinese in Turkey and Turks in China: Good will
ambassadors.
1964 – TOKYO
1988 – SEOUL
2008 – BEIJING
Working together for a better
future.