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The return of the 18th century Swedish merchant ship Gotheborg to China will mark the beginning of a "golden period" between the two countries, according to business circles of both sides.

 

A replica of Gotheborg arrived in Guangzhou, capital of south China's Guangdong Province, on July 18, after a nine-and-a-half month voyage.

 

The legendary Gotheborg made three voyages from Gothenburg to Guangzhou between 1743 and 1745, pioneering trade between Sweden and China.

 

On its last return trip to Sweden in 1745, tragedy struck when it smashed into rocks about 900 meters from its destination after a 30-month voyage to China. It sunk with its entire cargo, including tea, china and silk, outside the port of Gothenburg.

 

Swedish King Carl XVI Gustaf and Queen Silvia, who arrived in China on July 17 on a six-day state visit, made a symbolic exit from Gotheborg III's cabin, to the applause of thousands of local officials and residents.

 

The king's entourage includes chief executives of renowned Swedish firms like ABB, Volvo, SAS and SAAB, who held business discussions with their Chinese counterparts at a trade seminar.

 

Eddie Chen, chief representative of the Invest in Sweden Agency, said: "Small and medium-sized Swedish companies involved in communications, vehicles, pharmacy, precision manufacturing and design will gain more business information by visiting China and it will become easier for them to enter the Chinese market."

 

Economic ties have developed smoothly since the two countries established diplomatic ties in 1950. Swedish investment in China has increased greatly since the 1990s.

 

China has become Sweden's largest market in Asia since 2004 and Sweden is China's largest trade partner in North Europe.

 

Sources with the Swedish Embassy in Beijing said about 300 Swedish companies have set up business operations in China, bringing a total investment of US$2.8 billion.

 

The brands of Ericsson, Volvo, Tetra Pak, SKF and Ikea have become popular among Chinese people.

 

In recent years, Swedish companies in China have put more funds into research and development. Ericsson will invest US$1 billion in this field between 2006 and 2010.

 

Meanwhile, many Chinese businesses have invested in Sweden. Big-name IT and telecommunications giants including Huawei and Zhongxing have established research and development centers in Sweden.

 

During the ship's one-month stay in Guangzhou, the two countries will hold activities to promote exchanges in culture, tourism, economy and trade, said Wang Xiaoling, vice mayor of Guangzhou.

 

In 2005, trade volume between the two countries reached US$5.7 billion, China's Ministry of Commerce said, of which US$1.8 billion was Swedish investment. At present, about 250 Swedish companies have invested in China.

 

China's exports and imports with Sweden reached US$501.761 million in May 2006, and the trade in January-May period reached US$2.589 billion, up 16.1 percent on the previous year.

 

Bosse Ringholm, deputy prime minister of Sweden, said China and Sweden contributed to economic globalization about 300 years ago and Gotheborg marks the friendly ties between the two countries and their common commitment.

 

As China's economy develops fast, Ringholm said he hopes the two countries can enlarge trade exchanges and cooperation.

 

Wang Xiaoling said the government will introduce business policies to Swedish business people and provide convenience for them.

 

Ulf Sormark, Swedish consul general in Guangzhou, said he believes the return of Gotheborg shows economic ties between the two countries have entered a new "golden period."

 

(Xinhua News Agency July 24, 2006)