Visiting Cypriot President on Thursday vowed to support Chinese companies open up in Cyprus.

"My government gives its full support and encouragement to any serious cooperation between Cypriot and Chinese companies," Tassos Papadopoulos, President of Cyprus, said at a China-Cyprus economic and trade forum.

"Our policy is to create a stimulating environment and the necessary conditions for such cooperation to develop into successful business ventures," said Papadopoulos.

He said the objective of his five-day state visit was to "reaffirm the excellent political and diplomatic relations" between China and Cyprus and to "build upon it to strengthen economic relationship".

The Cyprus economy boasted a higher than EU-average growth rate of 3.8 percent, low unemployment of 3.8 percent, 2.6 percent inflation, and an average per capita income of 22,000 US dollars.

From Jan. 1, 2008, the Euro would be introduced into Cyprus, which would reduce the foreign exchange rate risk and the cost of foreign trade and ensure price transparency through increased competition and macroeconomic stability, he said.

A "Foreign Investors Service Centre" had been established as a "one-stop shop" to help in starting a business in Cyprus.

By March 2007, the Cyprus government planned to make possible the acquisition of all necessary permits and the completion of all procedures for a new company or business within seven days of the initial application.

China-Cyprus trade in 2005 was worth 290 million U.S. dollars, up 55 percent from 2004. The figure in the first ten months of this year was 295 million U.S. dollars.

"The current total trade volume between our two countries is relatively small, which indicates a great and inviting margin to increase the cooperation in the field of trade," Papadopoulos said.

He also encouraged joint ventures between Cypriot and Chinese companies, such as construction projects.

More than 300 participants from nearly 200 companies involved in sectors such as textiles, construction, agriculture, food and beverage, furniture, tourism, financial services, and education, attended the forum.

Chinese business people attached great importance to the geographical location of Cyprus and its favorable business environment, said Zhang Wei, vice chairman of the China Council for the Promotion of International Trade (CCPIT).

The CCPIT would enhance cooperation with the Cyprus Chamber of Commerce and Industry to broaden opportunities and services for Chinese and Cyprus companies, Zhang said.

Source: Xinhua