In a move widely expected to dramatically increase Chinese investment in Ireland, the Chinese Investment Corporation (CIC), one of the world’s richest investment funds, signed a memorandum of understanding with the Irish National Treasury Management Agency (NTMA), March 27 in Beijing.

“This memorandum represents a major initiative for enhanced co-operation and engagement in areas of common interest,” said NTMA Chief Executive John Corrigan in an official statement. “We very much look forward to working with CIC International.”

The agreement immediately sparked speculation over what type of investments would be made in the Irish economy, with analysts stating that the agreement could signal a planned takeover of some of Ireland’s state assets or banks. The Irish economy, which is seeking to create jobs and spur a revival, welcomed the news; “Cash-rich Chinese to pump billions into economy” was the headline of the Irish Independent’s story.

“China actually could play a quite positive role in helping Ireland out of the international financial and European debt crises,” said Wang Zhanpeng, director of the Irish Studies Centre at the Beijing Foreign Studies University in an interview with the Business Mirror. “Ireland has realized the importance of China’s growing international status and economy.”

Meanwhile, in the wake of last week’s agreement, Irish Prime Minister Enda Kenny said that Chinese investors should be confident investing in Ireland despite recent statistics.

"There are enough opportunities for Chinese companies to invest in infrastructure in Ireland. We have a lot of infrastructure that is publicly owned, and part of it is going to be sold in the next two to three years," said Barry O'Leary, chief executive officer of Investment and Development Agency Ireland is quoted as saying in a China Daily story. Irish Prime Minister Enda Kenny said that key Irish industries ripe for Chinese investment include high technologies, urbanization and environmental programs, water, and renewable energy.

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