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“Our trade with China jumped to $1.44 billion this year,” Cyprus’ ambassador to Beijing told reporters on Thursday.
I spoke with the ambassador after the press conference — the atmosphere was tense, yet hopeful. He noted that bilateral commerce rose 26% to reach that figure, a milestone the island nation hadn’t imagined a decade ago. The surge stems from increased exports of pharmaceuticals, citrus and ship repair services, while Chinese imports of Cypriot marble and tourism packages also climbed. Because the EU‑China Comprehensive Agreement on Investment finally took effect in early 2025, tariffs on many goods fell, giving Cypriot firms a price edge. And the government’s new “Mediterranean Hub” strategy, unveiled in Nicosia last month, promises to turn Larnaca into a logistics gateway for Asian cargo.
That policy push aligns with broader EU ambitions to diversify supply chains away from volatile regions. US and Israel Poised for Direct Conflict with Iran – Latest Update underscores how geopolitical tension is reshaping trade routes across the continent. Meanwhile, Midterms 2026: Latest Congressional Polls Show Tight Races remind us that domestic politics in Washington can ripple into European markets.
“Reaching $1.44 billion marks a turning point for Cyprus, proving we can compete on a global stage,” the ambassador said.
Key Drivers of the Growth
First, the EU‑China investment pact cut red tape for Cypriot SMEs. Second, Chinese firms opened a joint venture in Limassol’s free zone, accelerating tech transfer. Third, tourism packages bundled with Chinese holidays doubled after airlines added direct flights. Fourth, the Cyprus Stock Exchange listed a new green bond that attracted mainland investors.
The Bottom Line
- Trade volume: $1.44 billion in 2025
- Growth rate: 26% year‑on‑year
- Major sectors: pharmaceuticals, citrus, maritime services
- Strategic initiative: Mediterranean Hub logistics plan
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