Flying to Beijing for official talks, Çağlayan met with China's Trade Minister Chen Deming. After the meeting, Çağlayan disclosed the topics on which they had agreed ahead of the joint economic commission slated for Sept. 27 and 28 in Beijing. He stated that the Chinese are eager to be involved in the construction of the third bridge over the Bosporus, and while the Chinese ambassador had informed him of their intention to do so, he wanted to confirm this by meeting with the Chinese trade minister.
He indicated that he had listened to the views expressed by the Chinese concerning the third bridge. "We have a free market economy, and our market is open for their potential involvement. I told the Chinese trade minister that they are free to go ahead. The tender standards and conditions are known. I see no potential obstacles," he said. Çağlayan explained further that China had said they may participate in the project as a contractor or jointly with a Turkish firm and they had also offered to provide financial support as another option.
Partnership deal with Chinese Eximbank
Çağlayan also indicated that Turkish banks and Chinese Eximbank may strike a partnership deal that will ensure a greater flow of long-term loans from Eximbank to energy investments in Turkey. He added that they also agreed that the Chinese bank should open a branch in Turkey and make a deal with Türkiye Halk Bank for the provision of funds via this bank. This agreement would allow Eximbank to provide financial support to Türkiye Halk Bank, which would in return give loans to small and medium-sized enterprises (SMEs) and Turkish exporters. Çağlayan emphasized that the Eximbank loans are important because they would have longer repayment terms with lower interest rates; Eximbank loans could total $500 million or more.
Chinese to invest in Turkish automotive sector
Minister Çağlayan explained that Chinese automobile brands Chery and Geely are preparing to make investments in Turkey. "They have made some concrete progress in terms of investing in various provinces in Turkey," he said. Turkey intends to conclude a free trade agreement with China, and Çağlayan disclosed that during their meeting he had conveyed Turkey's intention of making a preferential trade agreement at the first opportunity. He further reported that the Chinese had warmed towards the proposal of using local currencies in trade between the two countries and had reiterated that Turkey's trade with Russia is done using the ruble and the Turkish lira.
Since 2007, Turkish firms had ordered the building of 51 vessels by Chinese firms, amounting to some $2.7 billion, but as the global economic crisis has led to a decrease in vessel prices, Turkish firms now wanted to cancel these orders. Çağlayan said he had discussed this issue with Minister Deming, who had assured him that he would try to arrange a meeting between the parties. Çağlayan said they had also discussed the glitches that had prevented Aksa Jeneratör from entering the Chinese Telecom tender, which would also be looked at by the Chinese minister. He added that Turkey was seeking to promote cultural and historical tourism to Chinese tourists and that the deficit in trade between Turkey and China has started to improve in Turkey's favor. He also indicated that China intends to use Turkey in its plan to export goods to Europe via rail.
