China’s rising importance as a world power has been noted by many, including Thomas L. Friedman, the award-winning New York Times columnist. In his best-selling book The world is flat, Friedman writes about China’s growing influence and notes that those who succeed in establishing links with partners in China will be best-equipped to deal with the economic perturbations of today’s rapidly changing world.

The EXPO 2010 exhibition in Shanghai will be held for six months and will be seen by a large number of people. Organizers expect about 70 million visitors, of whom about 90% will be from China.

EXPO therefore presents an unprecedented opportunity for Latvia to showcase two fields of activity where the country is already competitive: innovative products and tourism. The promotion of these two spheres is also a Latvian government priority.

Through the EXPO exhibition in Shanghai, tens of millions of people will become acquainted with Latvian-made products and with Latvia as an attractive tourist destination. The promotion of Latvian goods and services and of Latvia as a place to visit will provide ample opportunities for the establishment of fruitful business partnerships. Therefore, Latvia’s participation in the EXPO exhibition should generate long-term returns that are far greater than the 2.5 million-LVL (3.5 million EUR) investment that will be necessary for setting up the Latvian pavilion.

 Independent studies testify that the benefits of participating in EXPO exhibitions far outweigh the costs. According to one such study, the Netherlands invested 35 million EUR for participating in the Hanover EXPO in 2000. The country’s economy, however, gained 350 million EUR from the additional export of Dutch goods and services.

Latvia’s investment of 2.5 million LVL is considerably less than the average cost of 13 million EUR for setting up a pavilion at the 2010 EXPO exhibition in Shanghai. In view of China’s growing economic potential, EXPO presents a magnificent opportunity to present innovative, Latvian products in the world’s most populous country and to promote Latvia as a place to visit for Asian tourists. This well-placed investment is sure to provide great benefits to Latvia’s economy in the long term.