PM announces memorandum of understanding with China

Muscat announces Chinese MOU • Video: Ray Attard

At a conference celebrating the 20th anniversary of the Business Weekly newspaper, Prime Minister Joseph Muscat this morning announced that he would be signing a memorandum of understanding with Beijing.

The memorandum would serve as a blueprint for five years of cooperation from 2014 to 2019.

The agreement will encapsulate various sectors including energy, infrastructure, health, air services, tourism, sport and others.

Describing it as "one of the best deals ever brokered by the European country with this major economy," Muscat said that the memorandum would help facilitate investment opportunities for both countries.

"China is bound to become the number one economy and we are keen to enhance our relationship with the country," he said. "Having met a number of Chinese decision-makers, I can tell you that even they are impressed with our people. There is potential for strong collaboration."

The PM cited three factors that bode well for Malta and its economy; its human capital, which he described as "definitely above average", its geo-strategic position, "at home in both Europe and Africa", and its legislative facility.

Speaking about China itself, the PM expressed the hopes that such an agreement might prove to be a precedent. "We do not want to put all our eggs in one basket," he said.

"China happens to take decisions astonishingly fast for a number of reasons, which I won't go into. However, we would love to have the same form of agreement with other countries such as those in the Gulf."

In March, government signed a deal with China Power Investment Corporation paving the way for a €320 million investment in Malta's state-owned energy company Enemalta.

The deal was brokered during Prime Minister Joseph Muscat’s visit in China in September 2013, when a Memorandum of Understanding was signed by energy minister Konrad Mizzi and Lu Qizhou, Chief Executive Officer of China Power Investment Corporation.