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Trade between Cyprus and China reached $1.44 billion in 2025, with both countries seeking new opportunities in investment, technology, renewable energy and tourism.
The figures were presented by Chinese Ambassador to Cyprus Yang Yundong at the Cyprus-China Cooperation and Entrepreneurship Forum, held on Tuesday at the Cyprus Chamber of Commerce and Industry (CCCI) in Nicosia. China ranked as Cyprus’s fourth-largest trading partner and third-largest source of imports last year.
The event brought together business representatives, municipal leaders and investment officials to discuss how the two countries could turn their existing economic relationship into practical commercial partnerships. Cypriot products such as halloumi, zivania and juices are also gaining a foothold in the Chinese market.
Investment opportunities across key sectors
Yang said Cyprus and China had considerable potential to work together in shipping, tourism, green energy and the digital economy. He also presented Cyprus as a potential link between Chinese businesses and the European Union.
The forum formed part of events marking 55 years of diplomatic relations between the two countries. Cooperation between municipalities was identified as another area for development, following the establishment of the China-Cyprus Sister Cities Alliance in September 2023.
The Chinese ambassador also pointed to opportunities arising from developments in artificial intelligence, robotics and other emerging technologies, which could create new openings for foreign companies operating in China.
CCCI President Stavros Stavrou, whose speech was delivered by the chamber's Director General, Philokypros Roussounides, said the priority should be to convert diplomatic and economic ties into lasting business relationships.
Cyprus could provide Chinese companies with a base for accessing the EU single market, supported by its location between Europe, Asia and Africa, professional services, skilled workforce and legal framework. Chinese businesses, in turn, could offer Cypriot companies access to a major market with significant manufacturing and technological capabilities.
A planned agreement between Cypriot tourism company Top Kinisis and China's Zhejiang Overseas (Ningbo) International Travel Service Co., Ltd. was cited as one example of the commercial partnerships the forum could help generate.
Nicosia targets 80% energy self-sufficiency
Nicosia Mayor Charalambos Prountzos outlined plans for cooperation with Chinese companies in renewable energy, smart-city systems and research.
The capital is pursuing a project intended to meet 80% of its energy needs through renewable sources. The proposal includes an 11-megawatt photovoltaic installation with energy storage capacity. Two studies connected to the project have been completed with European funding, and work is continuing.
Prountzos said Chinese companies with expertise in renewable energy could be potential partners as the project advances.
He also announced plans for an agreement to connect academic and research institutions in Nicosia with counterparts in Chinese cities. The signing was scheduled for Friday in Beijing under the auspices of the Ministry of Education.
Nicosia's research and education sector was presented as a key asset, with six universities, six centres of excellence and approximately 50,000 students. The mayor said these resources could help attract international businesses and specialised workers.
The city is also seeking opportunities to develop its existing smart-city infrastructure, which includes a fibre-optic network, sensors, smart lighting, waste-management systems and the Novoville platform for communication with residents.
Prountzos added that competitive business and housing costs, combined with an established academic sector and an economy less dependent on seasonal tourism, made the capital an attractive location for investment.
Municipalities seek practical cooperation
Andreas Vyras, President of the Union of Cyprus Municipalities and Mayor of Larnaca, called for stronger links between local authorities in the two countries.
He said China could contribute technological expertise and modernisation opportunities, while Cyprus could offer Chinese partners access to the European market and the Middle East.
Both countries face similar municipal challenges, including waste management, urban planning, public services and the development of sustainable, technology-enabled cities.
Vyras recalled a training visit to China in 2025 involving a 26-member Cypriot local government delegation. Participants examined approaches to urban development and learned how cities could combine economic growth with the preservation of historical heritage.
Cypriot municipalities, he said, were ready to support further initiatives emerging from the forum.
Technology accounts for up to 16% of Cyprus GDP
Invest Cyprus Director General Marios Tannousis said information and communications technology had become a major contributor to the national economy, generating more than €4 billion annually, or approximately 15% to 16% of GDP.
He also reported growth in foreign direct investment from several regions and said Cyprus ranked among the world's 10 leading countries for foreign investment per capita, according to the figures he presented.
Shipping, education, financial services and tourism were also identified as important sectors for international investment.
For Chinese companies, Tannousis said Cyprus could function as a regional base for operations across the EU, the Middle East and North Africa. Its geographical position, European regulatory framework and legal system could support investment and commercial expansion.
Financial technology was another potential area for cooperation, with Cyprus's innovation ecosystem and regulatory structures offering a foundation for new ventures.
Business association counts more than 200 members
The Cyprus-China Business Association, which has more than 200 members, is also working to expand commercial links through business missions, conferences and networking events in both countries.
Its president, Theodoros Parperis, said Cyprus offered Chinese companies a combination of geographical advantages, a legal and tax framework, and professional and digital services that could support expansion into European and regional markets.
The association is preparing another initiative in China, with Parperis expressing hope that it would be launched soon.
The forum's participants agreed that future progress would depend on turning discussions and proposed agreements into measurable commercial activity, creating opportunities for companies and communities in both countries.
