Francisco Leandro, Associate Professor, University of Macau
February, 2025

The synergistic effects of Sino-Portuguese economic and cultural cooperation have garnered significant scholarly attention in recent years, underscoring the enduring diplomatic and economic ties between China and Portugal. This synergistic effect works as a sort of functional power in cultural and economics, supported by knowledge diplomacy. The concept of functional power in international relations refers to the ability of international actors to influence global affairs through specialized functions and cooperation in specific sectors, rather than through traditional military or economic instruments. This approach emphasizes the role of (…) regimes in facilitating cooperation and coordination among international actors, focusing on common interests and needs (Imber, 2023).

Functional power in international relations is characterized by sector-specific cooperation (…) and the use of technical expertise to address international challenges, thereby fostering a more integrated and cooperative international system. Through specialized cooperation in trade, investment, culture, and education, international actors leverage their unique strengths to achieve mutual benefits. Functional power is particularly relevant in the context of China-Portugal bilateral relations, where both countries leverage their unique strengths to enhance mutual benefits and global influence. While China is recognized as a global power, the cultural and economic influence of the Portuguese Republic should not be overlooked. Portugal’s historical legacy in Macau, its membership in the European Union, its extensive Exclusive Economic Zone (EEZ)—the 20th largest in the world—and its cultural networks within the Lusophone world, all contribute to its strategic importance to China. Moreover, the strategic importance of Macau, serves as a bridge between China and the Lusophone world. Macau’s unique position as a Special Administrative Region of China with historical ties to Portugal enables it to act as a hub for economic and cultural exchanges (Pimenta, 2024). This functional role enhances China’s influence in Portuguese-speaking countries and reinforces Portugal’s position within the European Union. These factors facilitate a unique and mutually beneficial relationship.

Conversely, China holds significant strategic importance for Portugal, acting as a dependable partner endowed with extensive industrial capabilities and substantial market potential. China’s engagement with Portugal enhances its geopolitical and economic standing relative to other nations and economic blocs. This partnership not only facilitates China’s global outreach but also strengthens its influence within the Community of Portuguese Language Countries (CPLP), which comprises eight other Portuguese-speaking nations. By leveraging Portugal’s unique position, China effectively amplifies its presence and operational capacity within these countries, fostering deeper economic integration and cooperation. This dynamic relationship underscores the mutual benefits derived from their collaboration, highlighting China’s role in bolstering Portugal’s economic landscape while simultaneously advancing its own strategic interests on a global scale.

China and Portugal have a long history of diplomatic and economic interactions, dating back to the early 16th century when Portuguese navigators first arrived in China (Leandro & Li, 2025). In recent decades, their relationship has evolved into a comprehensive strategic partnership, formalized in 2005 (and deepened in 2017 and 2018), which underscores the importance of functional cooperation in various sectors (Leandro & Li, 2025). This partnership is characterized by collaboration in trade, investment, culture, and technology, reflecting the principles of functional power. One of the key areas where functional power is evident in China-Portugal relations is in trade and investment. China has become one of Portugal’s most significant trading partners, with substantial exchanges in textiles, electronics, and machinery (Leandro & Li, 2025; Pimenta, 2024). The synergy between China and Portugal exemplifies a model of international partnership that leverages historical ties and contemporary economic imperatives to achieve shared objectives. Thus, the Sino-Portuguese relationship exemplifies a dynamic interplay of cultural affinity and economic pragmatism, fostering bilateral development and cooperation. The strategic partnership between these two nations is not only a testament to their shared interests but also a model of how economic and cultural synergies can drive mutual development. The establishment of the Forum for Economic and Trade Cooperation between China and Portuguese-speaking countries in 2003 has further institutionalized these ties, fostering a platform for dialogue and collaboration (Leandro & Li, 2025).

Since 2017, Portugal and China have maintained a “blue partnership” aimed at reinforcing collaboration in maritime and commercial projects. This partnership underscores the strategic importance of the maritime sector in bilateral relations, with both countries committed to promoting the growth of the blue economy. The blue partnership facilitates cooperation between governments, scientific communities, and businesses, focusing on sustainable development and technological innovation in maritime industries. By enhancing maritime connectivity and leveraging their respective strengths, Portugal and China can drive economic growth and contribute to global maritime governance (Tavares da Silva & Pereira, 2020; Macao Magazine, 2021).

Economically, Sino-Portuguese cooperation has led to increased bilateral trade and investment. China’s Belt and Road Initiative (B&RI) has been a pivotal framework in this regard, facilitating infrastructure projects and enhancing connectivity between the two countries. Portugal’s strategic location in Europe and its membership in the European Union (EU) make it an attractive partner for China, which views Portugal as a gateway to the broader European market (Leandro & Duarte, 2020). The B&RI has enabled Portugal to leverage its geographic position, reducing its peripheral status within the EU and opening new avenues for trade and investment. This has resulted in significant Chinese investments in Portuguese sectors such as energy, infrastructure, insurance, health, real estate and finance, thereby boosting economic growth and job creation in Portugal (Leandro & Li, 2025).

New governmental initiatives such as the establishment of the Hengqin Cooperation Zone plays a crucial role in this broader initiative by serving as a bridge between Macau and the mainland, facilitating economic diversification and innovation. This Cooperation Zone has introduced over 30 key policies to support economic growth, including tax incentives, streamlined administrative procedures, and enhanced cross-border travel (GDToday, 2024). These measures are designed to attract significant investment and have been instrumental in driving the development of high-growth industries such as traditional Chinese medicine, scientific innovation, high-end equipment manufacturing, cultural tourism, and modern finance (GDToday, 2024). The zone’s focus on innovation and industry aligns with national goals to promote technological advancement and modern services. Moreover, the cooperation zone has strengthened economic ties with Macau through investment and trade, supported by policies that facilitate cross-border activities. This integration has created new opportunities for Portuguese businesses to enter the Chinese market, benefiting from the favorable business environment and strategic location of Hengqin (Lusa, 2024). The cooperation zone’s emphasis on improving public services and infrastructure has also enhanced the quality of life for residents, further supporting sustainable development and economic growth.

Furthermore, the Hengqin Cooperation Zone and the Greater Bay Area (GBA) present significant opportunities for both Macau and Portugal. Established as part of the Guangdong-Macao Intensive Cooperation Zone, Hengqin aims to promote economic diversification and sustainable development in Macau. The zone offers a conducive environment for cross-border collaboration, particularly in sectors such as finance, technology, and tourism. By leveraging Hengqin’s strategic location and favorable policies, Macau and Portugal can enhance their economic ties and explore new avenues for investment and innovation. The cooperation zone also provides a platform for Portuguese businesses to access the broader Chinese market, thereby fostering greater economic integration and mutual growth (Government Information Bureau, 2023). The Greater Bay Area is a major economic initiative that encompasses nine cities in Guangdong province, along with Hong Kong and Macau. This region aims to create a globally competitive economic hub by integrating the strengths of these cities. The GBA’s strategic goals include promoting technological innovation, enhancing infrastructure connectivity, and fostering sustainable development (Government Information Bureau, 2023).

Another important area is culture. In this regard, the cooperation between China and Portugal has facilitated a rich exchange of ideas, traditions, and values. The presence of Confucius Institutes in Portugal and the promotion of the Portuguese language in China exemplify this cultural synergy. These initiatives have not only enhanced mutual understanding but also fostered people-to-people connections, which are crucial for sustaining long-term bilateral relations (Zhou, 2021). The cultural exchange has also been instrumental in promoting tourism, with an increasing number of Chinese tourists visiting Portugal and vice versa. This cultural diplomacy has strengthened the soft power of both nations, enabling them to project a positive image on the global stage. Furthermore, the two countries have signed agreements on academic cooperation, including the recognition of academic degrees and joint research initiatives (Romero, 2017). These exchanges foster mutual understanding and build trust, which are essential components of functional power.

The synergistic effects of economic and cultural cooperation extend significantly to the realm of education and research. Collaborative academic programs and joint research initiatives have been established between Portuguese and Chinese universities, contributing to the advancement of knowledge and innovation. These educational exchanges provide opportunities for students and researchers from both countries to gain new perspectives and skills, thereby enhancing their academic and professional development (Leandro & Li, 2025). The exchange of knowledge and expertise has also facilitated the development of new technologies and solutions to common challenges, such as climate change and public health.

As of 2024, there are five Confucius Institutes in Portugal. These institutes are located at the University of Porto, the University of Coimbra, the University of Aveiro, the University of Lisbon, and the University of Minho (Confucius Institutes in Portugal, n.d.). The Confucius Institutes aim to promote Chinese language and culture, support local Chinese teaching internationally, and facilitate cultural exchanges. Each institute collaborates with its host university to offer a range of Chinese language courses, cultural activities, and academic programs.

In China, the interest in Portuguese language education has been growing significantly. Currently, 34 universities in mainland China offer Portuguese as an optional subject, with 25 of these institutions also providing degree programs in Portuguese (Chinese elite university to include Portuguese, 2019). Additionally, in Macau SAR, the University of Macau, Macau Polytechnic University, and City University of Macau offer Portuguese language programs. This expansion reflects China’s increasing economic and diplomatic ties with Portuguese-speaking countries, particularly Brazil and Angola. The inclusion of Portuguese in the curriculum is part of a broader strategy to enhance China’s global engagement and prepare students for careers in international trade, diplomacy, and cultural exchange. One notable example is Tsinghua University, one of China’s most prestigious institutions, which has recently added Portuguese as an optional subject for all degree courses (Chinese elite university to include Portuguese, 2019). This move underscores the importance of Portuguese in China’s educational landscape and its relevance to the country’s strategic interests. The growing number of Chinese students studying Portuguese highlights the demand for proficiency in this language, driven by the evolving trade relationships and investment opportunities between China and Portuguese-speaking nations. Indeed, the presence of five Confucius Institutes in Portugal and the increasing number of Chinese universities offering Portuguese language courses demonstrate the mutual interest in fostering cultural and linguistic exchange. These initiatives are crucial for strengthening bilateral relations and enhancing the global competencies of students in both countries.

This collaborative approach (education and economics) exemplifies the concept of knowledge diplomacy, which refers to the strategic use of knowledge and education to foster international cooperation and enhance diplomatic relations. Knight (2018) emphasizes that knowledge diplomacy involves leveraging higher education and research to address global challenges, promote mutual understanding, and support sustainable development. It is characterized by the exchange of ideas, expertise, and innovation across borders, contributing to soft power and international influence (Knight, 2018). One key aspect of knowledge diplomacy is the establishment of international partnerships and networks that facilitate collaborative research and academic mobility. These initiatives not only advance scientific knowledge but also strengthen diplomatic ties and cultural understanding (Rüland, 2020). For instance, the collaboration between Portuguese and Chinese universities has led to significant advancements in various fields, including technology and public health, demonstrating the practical benefits of such partnerships (Leandro & Li, 2025).

Moreover, these educational exchanges and research collaborations help build bridges, fostering a deeper understanding and appreciation of diverse cultures and perspectives. As mentioned by Leandro & Li (2025) these initiatives play a crucial role in promoting innovation and addressing global challenges, thereby contributing to the overall progress of society. The synergistic effects of economic and cultural cooperation extend significantly to the realm of education and research. Collaborative academic programs and joint research initiatives have been established between Portuguese and Chinese universities, contributing to the advancement of knowledge and innovation. These educational exchanges provide opportunities for students and researchers from both countries to gain new perspectives and skills, thereby enhancing their academic and professional development (Leandro & Li, 2025). The exchange of knowledge and expertise has also facilitated the development of new technologies and solutions to common challenges, such as climate change and public health.

Overall, the synergistic effects of Sino-Portuguese economic and cultural cooperation have had a profound impact on the development of both entities. Economically, the increased trade and investment have stimulated growth and created new opportunities for businesses and individuals. Culturally, the exchange of ideas and traditions has fostered mutual understanding and strengthened bilateral relations. Educationally, the collaborative programs and research initiatives have advanced knowledge and innovation, contributing to the overall development of both countries. As China and Portugal continue to deepen their cooperation, these synergistic effects are likely to become even more pronounced, further enhancing the development and prosperity of both nations.

A key aspect of this cooperation is the concept of Guanxi, which refers to the network of relationships that facilitate business and social interactions in Chinese culture. Guanxi emphasizes the importance of building trust and long-term relationships, which are essential for successful economic and cultural exchanges (Bian, 2019). In the context of Sino-Portuguese relations, Guanxi plays a crucial role in fostering mutual understanding and cooperation. The emphasis on personal connections and reciprocal obligations aligns well with the collaborative nature of the economic and cultural initiatives between the two countries. By leveraging Guanxi, both China and Portugal can enhance their bilateral ties, ensuring that their partnerships are built on a foundation of trust and mutual benefit (Tian, 2020). This relational approach not only strengthens economic and cultural cooperation but also contributes to the overall development and stability of their bilateral relations.

Moreover, China’s support for António Guterres as the United Nations Secretary-General exemplifies the strategic use of Guanxi in international diplomacy. China has consistently backed Guterres, recognizing his efforts to uphold multilateralism and address global challenges. This support underscores China’s commitment to maintaining strong relationships with key international figures and institutions, thereby enhancing its influence on the global stage (Wang, 2022). By fostering such high-level diplomatic relationships, China reinforces its role as a pivotal player in international affairs, promoting stability and cooperation through trusted partnerships. The concept of Guanxi is integral to the success of Sino-Portuguese relations and China’s broader diplomatic strategy. It facilitates economic and cultural exchanges, strengthens bilateral ties, and supports China’s engagement with global leaders like António Guterres, contributing to a more stable and cooperative international environment.

This is precisely our major argument: Macau is in a position to exercise functional cultural-economic transformative power by fostering synergies capable of moving to a higher level of knowledge diplomacy between Portugal and China. As functional power involves the strategic use of technical expertise, guanxi and international cooperation, to advance development challenges, and that aligns with Macau’s potential role in enhancing Sino-Portuguese relations, as a contribution to national objectives.

References

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中文版

This paper appeared on Chinese Academy of Social Sciences, originally in Chinese language. Here is the link.