Exclusive: Green development cooperation promises win-win outcomes for Portuguese and Chinese companies: Portuguese ambassador to China

Editor's Note:

China and Portugal enjoy an ever-deepening comprehensive strategic partnership. As this year marks the 45th anniversary of diplomatic relations between the two countries, Portugal was among a group of countries that set up an independent booth for the first time at the 2024 China International Fair for Trade in Services (CIFTIS) in Beijing, seeking opportunities to deepen bilateral trade in services. The Global Times (GT) reporter Chu Daye recently conducted an exclusive interview with Portuguese Ambassador to China Paulo Jorge Nascimento (Nascimento), during which the envoy shared his views on the win-win nature of bilateral economic and trade cooperation. The ambassador also noted the potential of the two countries to develop the green economy, energy transition and jointly address climate change.

GT ：China-Portugal economic and trade ties have maintained a stable growth momentum. What opportunities does the enhanced China-Portugal economic and trade cooperation bring to Portuguese companies?

Nascimento: Over the past 12 to 15 years, China has been an important investor in Portugal, initially through M&A and recently with greenfield and brownfield investments from many Chinese companies in Portugal. In this respect, I think this has proven to be a very good experience for both Chinese and Portuguese companies involved, and therefore for both Portugal and China.

This positive experience is now the basis also for new investments. In 2023, nearly 70 percent of announced foreign direct investment in Portugal came from Chinese companies, which is highly significant. We believe that in the future there will be opportunities to increase that level of investment. It is in fact one of the main objectives for our participation at CIFTIS show this year - to show up the case of Portugal as a destination for Chinese investment.

We hope the good results achieved with Chinese companies in Portugal will endure and serve as a reference for new companies looking to invest in Portugal.

Also, we look forward to increasing our trade in services alongside our trade in goods. There is still an important difference between both trade in goods and trade in services. We believe that there is huge room to increase the bilateral trade in services.

GT: China and Portugal are partners of the Belt and Road Initiative (BRI). What are some of the latest achievements in BRI cooperation? 

Nascimento: Portugal has been one of the first European countries, particularly among EU countries, to adhere to the BRI. Since then, we have been following closely the developments of the BRI. Furthermore, we believe that Portugal, due to its geographic location, may act as a good partner and enabler within the BRI, namely in trade with South America and Africa. That's the framework upon which we position ourselves in the BRI.

GT: What opportunities exist between Portugal and China in green development?

Nascimento: We believe that the expertise and market-oriented frameworks of both Portugal and China regarding the greening of our economies constitute major opportunities and a path to explore on implementation of joint projects, investments and scientific and technological advances. Those are fundamental to carry on the path of the new economy and the shared efforts to fight climate change. Green development is clearly a framework for cooperation that we must explore together to tackle the common threat of climate change.

Portugal and China can complement each other. While China has scale and huge green-energy needs compared to Portugal, Portugal has been proving to be one of the leading green transition countries in Europe. In fact, over the past several years, we have been perfecting this sector by leveraging new technological developments and expertise.

Last year, 61 percent of all energy used in Portugal came from renewable sources. Wind energy and hydropower plants alone were responsible for 25 percent and 23 percent, respectively. This allowed Portugal to close its last coal power plant at the end of 2021.

We sincerely believe that green development can be a win-win cooperation for both Chinese and Portuguese companies, as it is the case in other sectors where Chinese and Portuguese companies are closely working together.