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The visiting Cypriot President on Thursday vowed to support Chinese companies opening 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 added that his five-day state visit was aimed at "reaffirming the excellent political and diplomatic relations" between China and Cyprus and to "build upon it to strengthen economic relationship".

At President Hu's invitation, Tassos Papadopoulos arrived in Shanghai on Monday kicking off his state visit to China.

His visit aligns with the 35th anniversary of China-Cyprus diplomatic relations, begun on December 14, 1971.

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

From Jan. 1, 2008, Cyprus will adopt the Euro currency, thus reducing foreign exchange rate risks, lowering foreign trade costs and ensuring price transparency through increased competition and macroeconomic stability, he said.

A "Foreign Investors Service Center" had been established as a "one-stop shop" to boost Chinese business in Cyprus.

By March 2007, the Cyprus government plans to facilitate procedural operations and permit access for a new company or business within seven days of the initial application.

China-Cyprus trade in 2005 was worth US$290 million, up 55 percent on 2004. Encouraging progress is continuing with trade in the first ten months of this year amounting to US$295 million.

"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.

Over 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 professionals attached great importance to the prime 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 will enhance cooperation with the Cyprus Chamber of Commerce and Industry to broaden opportunities and services for Chinese and Cyprus companies, Zhang said.

(Xinhua News Agency December 8, 2006)