The impact and promotion of friendly political relations between the two countries, economic and trade cooperation between China and Turkey achieved positive development. In July 1974 China and Turkey signed a trade agreement. In May 1981, the two countries signed a trade and economic protocol. After that the two sides signed a series of economic and trade cooperation documents and working mechanism.
In recent years, the rapid development of Sino-Turkish trade and economic cooperation. In 2009 China and Turkey bilateral trade amounted to over 14 billion dollars. As of the end of 2010, Chinese non-financial direct investment in Turkey 390 million U.S. dollars, Turkey to China actual investment 120 million U.S. dollars to China. In 2010, bilateral trade volume reached over $ 19 billion.
China will continue to take active measures to expand imports of competitive products in Turkey, and make the bilateral trade into balance. China is willing to actively participate in Turkey's railways, subways, bridges, electric power and other large-scale projects, and to provide financial support. The Chinese government encourages domestic enterprises to expand investment in Turkey, with Turkey to jointly develop new markets, also welcomes the Turkish companies to China for development. China hopes to strengthen bilateral business, personnel and information exchange between financial institutions and banks to support the mutual establishment of branches.
1. The Expansion of Merchandise Trade
In 1971 China and Turkey established diplomatic relations, after that bilateral trade grew steadily. In 2000 China and Turkey bilateral trade volume topped $1 billion, in 2010 reached more than 19 billion U.S. dollars. According to Turkish side in 2010 announced that four consecutive years China became the third largest source of imports, and the fourth largest trading partner of Turkey.
In October 2010 Chinese Premier Wen Jiabao successful visited to Turkey, both sides set a new goal of China and Turkey bilateral trade volume: By 2015, increase to $50 billion, by 2020 to reach $ 100 billion. To achieve this goal, the two sides will jointly develop the types and quantities of export commodities, will vigorously promote the process of trade facilitation, and provide the facilitation of tariffs, customs clearance, etc. and actively promote the rapid development of bilateral investment.
2.Promoting Bilateral Investment
China and Turkey, respectively, in 1990 and in 1995 signed an investment protection agreement and the avoidance of double taxation agreements. Since China and Turkey are net importers of capital, so a smaller scale of mutual investment between the two countries.
According to Chinese statistics, as of the end of 2010, China to Turkey total non-financial direct investment reached $ 390 million. Chinese investment in Turkey involved in traffic, shipping, energy, telecommunications, mineral resource extraction, motorcycle assembly, trade, tourism, catering and other fields. Currently, Chinese companies are actively involved in research in the form of BOT investment in Turkey, power generation, transportation and other large items. As of the end of 2010, Turkey to China actual investment in $ 120 million. Investment in areas ranging from early product manufacturing and processing, and gradually developed into the financial, retail, hotel, construction and other service sectors.
In the financial sector, Turkey and China will mutually establish banks, and open financial cooperation to actively promote the development of bilateral economic and trade relations. Turkish Deputy Prime Minister and State Minister Ali Babacan on June 2, 2011, announced the Turkish Monetary Authority has approved the Bank of China to open an office in Turkey, Turkish government is also considering Turkish banks to open an office in China.
In 2012 the activities of Chinese Culture Year will be held in Turkey, in 2013 the activities of Turkish Culture Year will be held in China, which will provide more opportunities to entrepreneurs of both countries and economic circles.
3. Strengthening Economic and Technical Cooperation
In December 1981, the two countries signed “Agreement on the Economic, Industrial and Technological Cooperation Agreement” to further open up cooperation in the economic field.
Currently, project contracting has become a highlight of trade cooperation between the two countries, and the project is expanding. More than 20 years until 2006, Chinese enterprises contracted projects in Turkey cumulative amount of approximately $ 750 million. 2007 was the Chinese enterprises contracted projects in Turkey, it was a year of a large development, China National Machinery Import & Export (Group) Co., Ltd and China Railway Construction Corporation participate in contracting Ankara - Istanbul high-speed rail project, which a total amount of 1.27 billion U.S. dollars, the Chinese side provided $ 720 million of export buyer credit.
Based on this project, China has signed a number of projects whhich are using large-scale thermal power, hydropower, cement, sulfuric acid plant, coal drilling, steel mills transformation etc. According to Chinese data, as of the end of 2009, Chinese companies contracted projects accumulated contract amount of $ 5.397 billion in Turkey, 2007, 2008, 2009 only three years newly signed contracted projects amounted to $ 4.65 billion, which was more than six times of its total contract amount compared to the past.
China and Turkey, there is a certain complementarity of scientific and technological cooperation, in 1990 China's National Science and Technology Commission and Scientific and Technological Research Council of Turkey (TUBITAK) signed a technological cooperation agreement. Entering the new century, the two sides in areas such as earthquake prediction, weather, leather processing, crop and livestock improvement has achieved the more successful communication.
4. Participating in Bilateral Conventions and Exhibitions
Istanbul is a commercial center, where organizes all kinds of international and professional exhibition and trade fairs, has a special influence. Turkey has 8 large exhibition companies, holding annually around 160 exhibitions. Every years, relevant production enterprises and foreign trade companies of China attend to the exhibition, and conduct site visits and trade negotiations, and promote China and Turkey and surrounding countries in the agricultural exchanges and economic and trade cooperation, strengthen on emerging markets, expand exports.