Why Chinese Tech Companies Are Setting Base in Ireland

Pro-Business Environment

The business-friendly policies of Ireland foster a favourable environment for foreign investment. Ireland has a well-established reputation for having a clear, stable, and supportive regulatory framework that doesn’t discriminate or impose exorbitant levies on foreign companies. This factor offers a welcoming business environment that is appealing to Chinese tech firms. These conditions vary from those of other European nations with less favourable tax regimes or more complex regulatory environments.

Corporate Tax Rate

The industrial policy of Ireland heavily depends on external investment, as numerous technology and pharmaceutical corporations have established their centre of operations in the country. Why is this? These companies are attracted to the country's 12.5% corporate tax rate. The low corporate tax rate is a massive draw for Chinese tech firms seeking to optimise profitability. Ireland's ability to draw foreign direct investment, particularly from the technology and biotech sectors, is frequently attributed to this tax advantage, making it more appealing than numerous other European nations that impose higher tax burdens.

Gateway to Europe

Ireland is a tiny, open country with an outward-facing economy, which the Irish government offers to tech companies in China as the ‘entryway to Europe’ for investment and trade. This economic doctrine is supported and incentivised by a relatively low corporate tax rate. Ireland promotes itself as "the gateway to Europe," capitalising on its membership in the European Union to provide Chinese enterprises access to the broader European market. This strategic positioning is further bolstered by the close relationships between Irish business agencies and Chinese firms, which enable a more seamless entry into European markets compared to other countries without robust bilateral relationships.

Digital Transformation and Sustainability

Sustainability and digital transformation are the main areas undergoing evolution and changes in Ireland. Regardless of the type of business you may have, be it small, large, multinational, or high-tech, chances are that they will be affected by digital transformation. When it comes to green economy and sustainability, companies in Ireland have to evaluate themselves and take appropriate measures to be more sustainable and efficient in their investments, in addition to using renewable sources and alternative materials. There’s a new enterprise base and an entire emerging market founded on the latest advancements needed for sustainable businesses. Chinese firms have taken the lead in both these sectors.

Ireland has identified digital transformation and sustainability as critical areas for future development and potential investment. This focus aligns with China's technological advancements, particularly in these sectors. Ireland positions itself as a valuable collaborator for Chinese firms seeking to expand globally by prioritising collaboration in sustainable and digital technologies.

Skilled Workforce

Ireland has a youthful, English-speaking, and highly-educated workforce that is appealing to foreign tech companies, including China. The country churns out a considerable number of graduates specialising in fields such as business, computer science, and engineering. The availability of a tech-savvy workforce is appealing to Chinese tech firms, given the tremendous amount of computing knowledge needed to run operations 24/7.

Strong Historical Ties

The strategic partnership between China and Ireland for mutually beneficial cooperation celebrated its tenth anniversary in 2022. Also, China and Ireland's economic and business cooperation spans over four decades. This presents a chance to build on that relationship and focus on sustainability, as there are technologies in China that need to be looked at across international markets. Ireland is the ideal place for Chinese firms to consider if they want to break into those markets.