Estonia and China

16.01.2012

Since Estonia regained its independence, Estonia-China relations have developed at a rapid pace and are very good. The development of relations has taken place thanks to reciprocal initiatives: many visits have taken place between the two nations and the most important bilateral agreements have been concluded.

The Republic of Estonia and the People’s Republic of China established diplomatic relations on 11 September 1991 during the visit of China’s Vice Minister of Foreign Affairs Tian Zengpei to Estonia. China opened its embassy in Tallinn in 1992. Since 28 August 2008, China has been represented in Estonia by Ambassador Huang Zhongpo. In addition to the embassy, there is also a Chinese economics and trade representation and a defence attaché office in Estonia.

The current Estonian Ambassador Andres Unga presented his credentials to Chinese President Hu Jintao on 30 September 2007. Estonia’s first ambassador to China Mait Martinson represented Estonia from 2002 to 2007. Prior to that Estonia was represented in Beijing by Chargé d’Affaires ad interim Malle Kurbel, who was assigned to the position on 1 July 2001. Estonia was first represented in China beginning in August 1997 by Chargé d’Affaires Andrei Birov. In 2010 an Estonian Consulate General began working in Shanghai. Estonia is also represented by Honorary Consul Liu Chak-Wan in Macau and, as of February 2011, by Honorary Consul Matthew Lam Kin Hong in Hong Kong. The Macau region, with its developed infrastructure and strategic geographic position, and Hong Kong are attractive to the Estonian business community.

Besides promoting economic relations and co-operation on the international level, Estonia is interested in promoting cultural and educational co-operation with China. Estonia has always supported a "One China Policy" (Estonia considers Taiwan an inseparable part of China's territory). Chinese officials and diplomats have repeatedly expressed respect for Estonia’s political choices and view Estonia’s accession to the EU positively.

In the XII Riigikogu there is, as previously, an Estonia-China parliamentary group. The chairman of the NPC China-Estonian Friendship Group established in the summer of 2008 is Ma Wenpu.

Visits

Bilateral Agreements

The following agreements have been concluded between the governments of Estonia and China:

• Agreement on Scientific and Technical Co-operation (came into force 20.04.1992);
• Agreement on Trade and Economic Co-operation (came into force 14.04.1993);
• Agreement on Cultural, Educational and Scientific Co-operation (came into force 03.09.1993);
• Agreement on the Promotion and Reciprocal Protection of Investments (came into force 01.06.1994);
• Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (came into force 08.01.1999);
• Agreement Relating to Civil Air Transport (came into force 03.01.2000).
• Sea Transport Agreement (came into force 18.12.2008)
• Legal Assistance Agreement (came into force 31.03.2011)

Also of note is the joint declaration on the development of bilateral relations signed in 1994 by President of Estonia Lennart Meri and President of China Jiang Zemin.

Economic Relations

Estonia and China have good and stable economic relations, but the distance and differences in size and culture between the two countries hinder co-operation somewhat. China’s interest towards Estonia is foremost due to Estonia’s favourable geographic position, its good transport infrastructure, and strong scientific and technical potential. Estonian entrepreneurs are interested in China for the purchase of consumer goods and appliances at competitive prices, a cheap production basis, a vast market, and offering transit opportunities for Chinese goods.

Bilateral economic relations between Estonia and China are the central focus of the meetings of politicians as well as the Joint Commission on Trade and Economic Co-operation that meets every two years. The main discussion topics have included co-operation in transit, logistics, and industrial production. The marketing of Estonian products to China is also an area that has received extensive discussion. The last joint commission meeting, the seventh one to take place, was held from 12-13 March 2008 in Beijing.

Now that most of the main economic agreements have been signed, the emphasis is being placed on expanding co-operation at the local level and on the creation of business contacts. Potential areas of co-operation include the manufacture of timber, food products, and other manufactured goods, information technology, education, and tourism. Co-operation in logistics is a developing area that holds potential. China has also shown interest in Estonian biotechnology and oil shale processing.

TRADE

Estonia’s trade with China in the 21st century has been characterised by a dramatic deficit, with the exception being 2006, when trade between the two countries was almost in balance—Estonian export was carried by the electronics sector.

After the first nine months of 2011 China ranked in 10th place among Estonia’s trade partners with a turnover of 498 million euros. Compared with the same period the previous year, turnover grew by 86%.

Estonian foreign trade with China 2005-2011:
(in millions EUR)

Source: Statistical Office of Estonia www.stat.ee

INVESTMENTS

According to the Bank of Estonia, as of 30 September 2011 Chinese direct investments in Estonia totalled 7.2 million euros. Estonian direct investments in China totalled 1.9 million euros.

Culture and education

Cultural co-operation between Estonia and China has been successful. The agreement on cultural, educational and scientific co-operation between the two countries entered into force in September 1993, and since 1998 there have been 2-year implementation plans concluded in order to carry out the agreement. However, Estonia-China cultural exchange is not limited to the relations foreseen by the agreement: Chinese restaurants are gaining popularity in Estonia, and there are also organisations that bring together people interested in Chinese culture and heritage.

Chinese dance troupes and music groups have performed in Estonia. Chinese art exhibitions have also been held in Estonia. Chinese films have featured in the Tallinn Black Nights Film Festival. In the fall of 2003, the Gold Prize was given to Estonian artist Benjamin Vasserman at the International Graphics Biennial. In July 2004, the Saku Children’s Choir visited Tianjin and children from Tianjin visited Estonia in August. In March 2010, Chinese Film Days took place in Estonia. In October 2010 an Estonian Film Festival took place in Shanghai.

In connection with the 20th anniversary of establishing bilateral relations in 2011, many events introducing Chinese culture took place in Estonia; these included three concerts by the Forbidden City Chamber Orchestra.

Each year since 1994, China has offered scholarships to Estonian students wanting to study Chinese. Chinese language and culture can be studied at Tartu University and Tallinn University. In September 2010 a Confucius Institute was opened at Tallinn University.

In the fall of 2010 an Estonian language instructor started working at Beijing Foreign Studies University for the first time in history.

Every year there are many Chinese university students studying in Estonia.
The Estonian and Chinese Academies of Science signed a Memorandum of Understanding for Scientific Co-operation in May 2000. It was signed by President of the Estonian Academy of Sciences Jüri Engelbrecht and his Chinese colleague, President of the Chinese Academy of Sciences Lu Yongxiang.