“We Encourage Chinese Entrepreneurs to Make the Best of the Unique Investment Environment in Türkiye.”

AMBASSADOR: Our friendship with China transcends centuries. In fact, Turkish and Chinese Empires were in close contact since the 15th century and as heirs to two great civilizations. 

This historic connection was restored with the reestablishment of our diplomatic relations 54 years ago. Today we continue to develop our relations on these deep-rooted ties and in accordance with the shared strategic vision put forward by leaders of our two countries, H.E. Mr. Recep Tayyip Erdoğan and H.E. Mr. Xi Jinping. 

In order to fulfill this common vision, we are working to advance our win-win cooperation in every field and elevate our strategic cooperation to new heights.   

In this vein, we move forward in our relationship with respect to each other’s sensitivities and we continue to adhere to the One-China principle.

Last year, our bilateral relations continued its significant momentum and we witnessed further developments in our political, economic, commercial and cultural exchanges.

President Erdoğan and President Xi met on the margins of the Shanghai Cooperation Organization Summit held in Astana in July 2024. They also met on the margins of the BRICS Summit in Kazan as well as the G20 Summit in Sao Paolo.

Mutual high-level visits in 2024 also demonstrated the willingness of both sides to boost relations in multitude fields. 

Our Foreign Minister Hakan Fidan visited Beijing, Urumqi and Kasghar in June 2024. During his visits, in addition to conducting in depth exchanges with his Chinese counterpart, His Excellency Wang Yi, he was received by His Excellency Vice President Han Zheng and met with high level officials in XUAR.

Our Foreign Ministers also met on the margins of the G20 Foreign Ministers' Meeting where they also discussed regional and global issues. 

One of the most significant visits in 2024 was the visit of our Minister of Finance H.E. Mehmet Şimşek to Beijing last November on the occasion of the second meeting of the Intergovernmental Cooperation Committee, co-chaired by Vice Premier Zhang Guoqing. This meeting allowed thorough and productive exchanges on various issues both at bilateral and at global context. 

Minister Şimşek was also received by Vice President Han Zheng and met with his Chinese counterpart Minister Liao Min as well as representatives of prominent financial institutions. 

Our Minister of Energy and Natural Resources Alparslan Bayraktar visited China twice in 2024 and signed two cooperation agreements, one on energy transition and the other on mining. 

We also had other high-level delegations from Türkiye from our Ministry on Interior, Ombudsman, leading political Party (AK Parti) representatives throughout the year. 

A Cooperation Agreement on Culture and Tourism was signed during Minister of Culture Sun Yeli’s visit to Türkiye in July 2024. Other high-levels visits to Türkiye from China also took place. 

All these visits demonstrate the dynamism of our relations in various fields.

In 2025, we will continue our efforts to further strengthen our relations and collaboration. We hope that 2025 will be the year where we witness visits at Presidential Level. 

We will also continue intensify our exchanges regarding many regional and global issues on which Türkiye and China share a common ground.

AMBASSADOR: Development of our economic ties constitutes one of the main spheres of the joint strategic vision put forward by our leaders H.E. Recep Tayyip Erdoğan and H.E. Xi Jinping.  The current state of our economic relations shows positive signs regarding the future of our win-win cooperation in all fields.

China is our biggest trade partner in Asia and as of 2024, our second biggest trade partner in the world. Our bilateral trade volume has increased 40-fold in the past 20 years and neared 50 billion Dollars in 2024. 

However, there is a need to bring our trade relations to a balanced and sustainable level. In this sense, more Chinese investments to Türkiye will boost the win-win cooperation between our countries. The advantages of Türkiye’s investment environment, namely its strategic location, economic potential, favorable demographics, supportive policies and diverse investment opportunities offer an attractive destination for both long-term and short-term investors.

Located between Europe, Asia, the Middle East and Africa, Türkiye is an ideal hub for trade and investment. In line with its customs union with the EU, Türkiye has adapted its legislation to all EU trade-related standards, providing a highly competitive and international marketplace. Additionally, having free trade agreements with 23 countries, Türkiye allows duty-free access to a market of nearly 1,5 billion people, providing investors unique opportunities to expand and diversify their consumer base.

Moreover, Türkiye offers various incentives for foreign investors, including tax breaks, investment zones, and policies aimed at encouraging both foreign direct investment (FDI) and domestic entrepreneurship. Special economic zones and free trade agreements further enhance its appeal. 

Türkiye has a young and dynamic population, which supports long-term economic growth. The growing middle class and increasing consumer demand create opportunities for businesses catering to this demographic.

Compared to other European and regional countries, Türkiye also offers relatively low labor costs, making it an attractive destination for manufacturing, outsourcing, and cost-effective operations.

Despite some challenges, Türkiye has a relatively large and diversified economy with sectors such as manufacturing, agriculture, construction, tourism, energy and technology showing significant growth. The government is committed to enhancing the country’s economic prospects.

Investors can explore a wide range of opportunities, among which automotive and chemicals constitute the two major Turkish manufacturing sectors. These sectors have the highest value of goods exported from Türkiye and 70% of exported automobiles go to the European market.

Türkiye is also making significant investments in infrastructure, including transportation, energy and communications. These developments are improving the overall business environment, making it easier to operate and invest in the country.

Türkiye is the 4th most visited country in the world. As a popular tourist destination with rich cultural heritage, natural beauties and historical sites, Türkiye’s tourism sector continues to grow, offering opportunities for investment in the related service industries. 

Last but not least, Türkiye’s technology ecosystem is expanding rapidly. With a growing number of startups in sectors such as fintech, e-commerce, and software development. The country has a thriving entrepreneurial culture and a competitive edge in digital transformation. There are currently 91 Technoparks in operation and 14 under construction. 

The Presidency Investment Office, provides a one-stop service for all those interested in benefiting from the advantages of investing in Türkiye.

AMBASSADOR: Today, there are 1,312 Chinese-owned companies operating in Türkiye.

In 2023, direct investments worth $206 million were made from Türkiye to China, while direct investments from China to Türkiye were recorded as $5.117 billion.

As you may know, BYD, one of the world's largest manufacturers of new energy vehicles, announced last year that it will invest around 1 billion US dollars in Türkiye to build an automotive production base. This project is a milestone of Chinese investment interests in Türkiye. There are other Chinese automotive manufacturers who are considering to follow the line of BYD. 

Another Chinese giant, e-commerce company Alibaba Group has invested around 2 billion US dollars to establish a regional logistics base at Istanbul Cargo Terminal. The same group also acquired Trendyol, a Turkish e-commerce platform, which is now becoming a regional e-trade platform across Eastern Europe.  

Ganfeng Lithium Group also recently announced an investment, totaling to 500 million US dollars, to build a joint production facility in Türkiye in order to produce energy power storage equipment. 

Kaisan Group, a Chinese compressor manufacturer, is in the process of building a production plant in Türkiye, worth of 1 billion USD.

All these examples show the great potential of our cooperation in the field of investment and future business opportunities. Türkiye is the gateway to Europe, the Middle East, Africa and West Asian markets and a regional manufacturing powerhouse. We encourage Chinese entrepreneurs to make the best of the unique investment environment in Türkiye.  

AMBASSADOR: As a member of the G-20, a member of the Customs Union with the EU since 1996, and its geo-strategic location in the intersection between Europe, Middle East and Asia, Türkiye is a very important logistics hub in its region. Istanbul Airport is now the busiest airport in Europe. As Europe's fastest growing flight center, you can reach 146 locations in six continents within 3 hours of flying time, serving more than 120 countries, 250 international and 50 domestic destinations. As a result, İstanbul Airport is becoming an international cargo hub for many multinational companies. Thus, the logistics infrastructure and geographical location of Türkiye make it one of the best investment destinations in the world. 

Türkiye is the 14th largest automotive manufacturer in the world, with an annual production of 1.5 million units last year.

We are the largest TV and household appliances/white goods manufacturer in Europe with a market value of $34 billion. Our exports in this category reached $28 billion last year.

In defense and aerospace, our annual spending and industry value reached new records of $19 billion and $11 billion, respectively, and we exported $2.3 billion worth of goods. 

The energy sector, with a market value of $66 billion, also indicates growing demand and Türkiye's great potential to become an energy hub with untapped renewable energy sources. 

Türkiye also has significant advantages in the agro-food industry, with a market value of $103 billion, and we have exported $19 billion worth of goods to around 200 countries.

In the infrastructure sector, the total PPP investment between 1986 and 2021 reached USD 170 billion, and Türkiye continues to offer many more opportunities in transportation, energy and healthcare.

Our financial services continue to show double-digit growth, with the Istanbul Financial Center being an important hub in the flow of international capital.

Türkiye is prioritizing investments especially in high-tech and innovative industries. Green energy, high-tech, innovative industries, renewable energy, chemical and automotive sectors are the most advantageous. The newly introduced HIT 30 investment incentive program provides special incentives for high-tech industries and start-ups.

AMBASSADOR: According to the "2024 Türkiye Startup Ecosystem Funding Report" published by StartupCentrum, a total of 577 startup investment rounds took place in Türkiye in 2024, securing $1.41 billion in funding. Public sector funding played a significant role, with 57% of the total investment rounds (329 rounds) supported by government-funded initiatives.

Among these, AI startups received the most funding, securing $715.8 million, while the biotechnology and healthcare sector had the most investment rounds, supporting 126 startups.

Tech parks also saw record investment growth. Investment in tech park startups jumped to $824.82 million, more than tripling from $237.71 million in 2023. The AI-native customer engagement platform “Insider” played a key role in this increase, securing the largest investment round at $500 million.

This was followed by on-demand fast delivery service “Getir”, which raised $250 million, while mobile gaming company “Spyke Games”, FinTech services “Colendi” and “Midas”, and AI-enhanced workplace safety platform “Intenseye” also attracted significant funding.

Our top universities, such as Middle East Technical University (METU), Boğazici University and Istanbul Technical University (ITU) are leading the way in creating innovative startups and attracting investors. These universities had the highest number of alumni who became startup founders and secured investments, followed by Koç University and Anadolu University.

Our Ministry of Industry and Technology launched a special incentives program called “Technology-Oriented Industry Action Program” which is specifically designed to meet the needs of tech companies with the aim of promoting start-ups, innovation and R&D.

Within the scope of this program, strategic investments related to the manufacturing of goods on the Priority Product List with the minimum investment amount of TRY10 million will be supported.  

There are incentives for Technology Development Zones (TDZ) as well. Income derived from software, design and R&D activities carried out in the TDZs are exempt from income and corporate income tax. Salaries of R&D, design and support personnel in these zones and out of the zones (limited to certain personnel and applicable to certain portion of income) are also exempt from income tax and stamp tax. 50% of the employer’s contribution of social security premiums will be subsidized by the Ministry of Finance for each R&D, design and support personnel, provided that their salaries are exempt from income tax. Delivery of goods and services produced exclusively in these zones and in the form of system management, data management, business applications, industrial, internet, mobile and military command control application software are also exempt from VAT.

AMBASSADOR: To attract investors, Türkiye offers many incentives to foreign investors, including, customs duty exemption for imported machinery and equipment, VAT exemption for both domestic purchase of and import of machinery and equipment as well as for construction expenditures for the manufacturing and tourism industries made until 31/12/2025. Within the scope of investment incentive documents, 25% statutory corporate tax rate for 2025 and many other regional and sector-based corporate tax reduction between 50% to 90% are applied depending on the location and the amount of the investment. 

Turkish government also offers social security employer premium contribution for minimum wage in the 6th region for up to 10 years; allocation of land as a right of easement or usage right for 49 years; and contributes to interest payments on the investment loans with a maturity of one year in the 3rd, 4th, 5th and 6th investment regions.

There are also incentives regarding the income withholding tax for the investments in the 6th region limited to 10 years and VAT refund granted for investments with a minimum fixed amount of TRY500 million and limited to the refund of non-recoverable VAT with respect to the construction part of the investment. 

In 2018 Türkiye also initiated one of the most competitive investment incentive packages in emerging markets called “Super Incentives”. This new model is a very important milestone through which a special incentive system unique to each investment project can now be developed. The program envisages a project-based support which will enable a flexible and customized incentive mechanism to the qualified investments. The qualification of an investment will be determined based on whether these investments meet the current or future requirements of Türkiye in line with the targets set in the development plans and annual programs and/or whether they could ensure continued supply, reduce dependence on foreign sources, achieve technologic transition, be innovative, and add value as well as being R&D focused. 

In the scope of “super incentives” mechanism, the investors can benefit from VAT and customs duty relief -VAT refund, reduced corporate tax rates or corporate tax exemptions, social security employer premium support, income withholding tax support, qualified personnel salary support, interest support or government grants, capital contributions, support on energy expenses, government purchase guarantee, land allocation and free of charge transfer of the land, infrastructure support and facilitation in bureaucratic process.

AMBASSADOR: Türkiye is a global tourism destination and ranks as the 4th most visited country in the world. With the strong product and practical promotional efforts of Türkiye Tourism Promotion and Development Agency (TGA), there has been a substantial growth in tourism in recent years. 

Overall, 2024 has been a record-breaking year in which Türkiye hosted more than 62 million visitors from all over the world. China stood out as one of the key emerging markets for the Turkish tourism industry with 65.1% growth in visitor number. According to the statistics of our Ministry of Culture and Tourism, Türkiye hosted 409,733 Chinese visitors in 2024. However, we think this number is much below its potential and we aim to welcome at least 1 million Chinese visitors annually in the following years. 

To attract more Chinese tourists, Türkiye’s official tourism board has been developing marketing initiatives tailored to the Chinese market to raise awareness of the wide range of destinations and experiences Türkiye has to offer. We see active participation in major tourism fairs and exhibitions in China, like ITB China, as a crucial component of strengthening the relations with Chinese authorities, tour operators, and tourism professionals. Meanwhile, the leading brand “GoTürkiye” is active on China's most popular social media platforms such as Wechat, Douyin, Weibo, and Xiaohongshu. In these platforms, Chinese visitors can easily explore travel inspirations in their own language. 

We know that most Chinese tourists prefer experience-oriented travel, discovering historical and cultural sites and natural attractions. In this sense Türkiye, being home to numerous civilizations such as Sumerians, Hittites, Byzantines and Ottomans throughout history, is an ideal and unique destination for our Chinese friends. 

Türkiye is capable of meeting all expectations of a variety of travelers with its hospitality and exceptional product diversity, including rich history, cultural values, outdoor adventures, luxury accommodation facilities and shopping opportunities. Türkiye’s rich historical heritage, with 21 sites on the UNESCO World Heritage List, includes must-see attractions along the ancient Silk Road. Nurtured and shaped by the deep-rooted Anatolian heritage and having created a fusion  with Middle eastern, Mediterranean, Caucasian and European cuisine, Turkish cuisine is another primary inspiration for visiting Türkiye.

İstanbul also stands out with its ancient history, cosmopolitan culture and art scene. It is the only city and metropolis in the world that connects two continents, Asia to Europe. 

The stunning natural wonders of Cappadocia, with its enchanting fairy chimneys and hot air balloon rides; Pamukkale’s mesmerizing white travertine terraces and thermal waters; Turkish Riviera’s world-renowned sun and turquoise sea; Göbeklitepe and Karahantepe, the most ancient ruins of human history dating back more than 10 thousand years; evergreen mountains and flamboyant coasts of the Black Sea region and many other destinations around Türkiye, all offer an unforgettable holiday experience. Meanwhile for adventure seekers, activities such as paragliding in Babadağ Mount, near Fethiye’s Ölüdeniz, hiking and camping over the clouds on the mountains of the Black sea, rafting in the gurgling rivers of the Mediterranean and the Black Sea region, skiing and snowboarding in the snowy mountains of Inner and Eastern Anatolia are some of the attractions awaiting to be experienced by our dauntless Chinese friends.  

Whether it is a romantic holiday, family trip or solo travel, Türkiye’s destinations are perfectly suited to Chinese travelers’ demands. Everybody can find something to their taste.