Ireland Agonizes Over Role Of Chinese Investments

The Irish economy has increasingly attracted Chinese investments, but is there a reputational cost?

An increasing number of critics argue that hosting Chinese firms links Ireland to allegations of human rights abuses against some companies.

In 2020, 25 Chinese companies operated in the Republic of Ireland. By this year, the number has risen to 40, according to Padraig Belton, reporting for BBC News.

For some, this influx of yuan offers Ireland an opportunity to reduce its reliance on being the European base for U.S. tech giants like Apple and Alphabet, while also creating additional jobs.

However, an increasing number of critics argue that hosting Chinese firms links Ireland to allegations of human rights abuses against some companies.

One such company is the Chinese clothing firm Shein, which established its European headquarters in Dublin in May 2023. Shein has been criticized for poor treatment of its workers, and earlier this year, it admitted to finding child labor in its supply chain.

The Irish government also faces diplomatic challenges as it lures Chinese companies that have been sanctioned by the U.S. Two notable examples are telecoms firm Huawei and pharmaceutical company WuXi Biologics.

In May, Ireland’s Minister of State for Trade Promotion, Dara Calleary, praised Huawei’s contribution of €800 million ($889 million; £668 million) annually to the Irish economy.

Huawei operates three research and development centers in Ireland, despite its telecom network equipment being banned in the U.S. since 2022 over national security concerns.

The UK has also ordered the removal of Huawei components from phone networks. Meanwhile, WuXi has invested over €1 billion since 2018 in a facility in Dundalk, near the Northern Ireland border.