For centuries Cyprus has hosted foreign visitors and empires seeking to use the island as a stepping stone for trade and geopolitical strategy between the West and East. This theory has proven to be the starting point between Cyprus China relations that were established after the formation of the Cyprus Republic back in 1960's.

Having celebrated 40 years of diplomatic ties in December 2011, Cyprus and China share a long history of friendship and mutual cooperation. This long history is today a solid base for a closer cooperation between Cyprus and China for the future. The Cyprus China relations are nowadays much stronger with keen interest from China to invest in Cyprus. Being the gateway to Europe, Cyprus can enable China to expand its financial activities to the whole of Europe.

A from 2004 Cyprus has been a full member of the European Union. Cyprus is taking over the EU presidency on the first of July, 2012 for the next six months. China can count on a trustful friend to bridge the gap between China and Europe and serve as a middle link in this effort. Already Cyprus Government has liberalized the Foreign Direct Investment policy for not only EU Nationals. Administrative procedures have been simplified and no limitations apply in most sectors of the economy. Consequently, foreign companies now have the opportunity of investing and establishing business in Cyprus on equal terms with local investors. Further to that a new policy has been implemented allowing Chinese property buyers applying for a Permanent Residence with a minimum investment of 300,000 Euros.

A recent example of the Cyprus China business relation is the proposal to redevelop the old Larnaca airport into a permanent Chinese trading and exhibition centre, a common project by both countries using the excellent geographical location Cyprus has on one hand and the technological and economical impact of China on the other.

As Cyprus is the south-easternmost European outpost lodged between three continents, it can definitely boast a favorable tax regime, an advanced commercial infrastructure and a conducive business environment suitable for Chinese investors. The two countries have signed 18 bilateral agreements in areas such as cultural, economic, scientific and technological cooperation, tourism, avoidance of double taxation, mutual promotion of investment and merchant shipping The past year Economic cooperation and trade between Cyprus and China continued to grow. The commerce departments of the two sides maintain sound communication and coordination, while Cypriot delegates from the Cyprus Chamber of Commerce and Industry, as well as Cyprus Chinese Business Association are in direct contact with Shanghai. Since then, the relationship between the two countries has matured and deepened, with economic, trade, scientific and cultural co-operation continuing to expand to this day.

In a recent announcement, Chinese Ambassador to Cyprus Li Guobang has said that Cyprus and China have supported each other in all major issues. Cyprus and China share good relations at the financial, commercial and cultural level. He continued by saying that this is just the beginning of a much stronger and closer cooperation between the two countries.

Cyprus, even thousands of times smaller than the great empire of China offers Chinese businesses a proposition that only few other locations can match.