OBSERVARE

Universidade Autónoma de Lisboa

e-ISSN: 1647-7251

VOL. 16, Nº. 2, TD2

Thematic Dossier

Portugal and China in International Relations:

Historical Legacies and Contemporary Dynamics

February 2026

126

SYNERGISTIC DYNAMICS OF SINO–PORTUGUESE PARTNERSHIP POLICIES:

IMPLICATIONS FOR ECONOMIC AND CULTURAL COOPERATION

YINKANGNI WANG

yinkangniwang@gmail.com

She is a Ph.D. candidate at the University of Macau (China). Her academic trajectory began with

an undergraduate exploration of the geopolitical implications of the Russia-Ukraine war for China,

which ignited her interest in global strategic dynamics. During her Master's studies, she delved

into the practical aspects of governance through research on e-government in Macau. Situated at

the intersection of China and the Lusophone world, Macau served as a bridge, leading her to

specialize in Sino-Portuguese relations within the framework of digital geopolitics. Her current

research interests lie at the confluence of e-governance, geostrategy, and the unique role of

functional powers like Portugal in shaping international cooperation. https://orcid.org/0009-

0000-7194-0022

FRANCISCO JOSÉ B. S. LEANDRO

fleandro@um.edu.mo

He received his Ph.D. in Political Science and International Relations from the Catholic University

of Portugal in 2010. From 2014 to 2018, he served as the Program Coordinator at the Institute of

Social and Legal Studies, Faculty of Humanities, University of Saint Joseph in Macau, China. From

2018 to 2023, he was the Associate Dean of the Institute for Research on Portuguese-Speaking

Countries at the City University of Macau, China. Currently, he is an Associate Professor with

Habilitation in International Relations at the Faculty of Social Sciences, University of Macau, and

Deputy Director of the Institute for Global and Public Affairs. His recent publications include: Is

China a Global Power? (2025), Palgrave Macmillan and The Palgrave Handbook on Geopolitics of

Brazil and South Atlantic (2025), Palgrave Macmillan. Francisco Leandro is a member of

OBSERVARE (Observatory of Foreign Relations), established in 1996 as a centre for studies on

International Relations at the Autonomous University of Lisbon, Portugal. https://orcid.org/0000-

0002-1443-5828

Abstract

This study examines the synergistic effects of Sino-Portuguese economic cooperation and

cultural engagement from 2003 to 2024, with particular attention to the role of “guanxi” as a

relational framework. Drawing on qualitative analysis, the study explores how state-level

diplomacy and people-to-people exchanges have jointly fostered trust, reciprocity, and long-

term commitment. Evidence from state visits, cultural diplomacy programs, and educational

exchanges demonstrates how economic cooperation provides material foundations for cultural

engagement, while cultural exchange reduces communication barriers, fosters loyalty, and

enhances resilience in bilateral relations. The findings highlight that economic and cultural

cooperation do not operate in isolation but reinforce one another, generating outcomes

greater than the sum of their parts. By situating Portugal as a functional power and China as

a global actor, this research contributes to theoretical debates on relational international

relations and offers practical insights into how cultural capital and economic collaboration can

jointly shape sustainable partnerships.

Keywords

Portugal, China, Macao, Guanxi, Synergy Effects, Cultural Diplomacy.

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Thematic Dossier - Portugal and China in International Relations: Historical Legacies

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Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

127

Resumo

Este estudo analisa os efeitos sinérgicos da cooperação económica e do envolvimento cultural

sino português entre 2003 e 2024, com particular atenção ao papel do guanxi enquanto

enquadramento relacional. Com base numa análise qualitativa, o estudo explora de que forma

a diplomacia estatal e as interações interpessoais têm conjuntamente promovido confiança,

reciprocidade e compromisso de longo prazo. As evidências recolhidas - incluindo visitas de

Estado, programas de diplomacia cultural e intercâmbios educativos - demonstram que a

cooperação económica fornece as bases materiais para o envolvimento cultural, enquanto a

troca cultural reduz barreiras de comunicação, fomenta lealdade e reforça a resiliência das

relações bilaterais. Os resultados mostram que a cooperação económica e a cooperação

cultural não operam de forma isolada, mas se reforçam mutuamente, gerando impactos

superiores à soma das suas partes. Ao posicionar Portugal como um poder funcional e a China

como um ator global, esta investigação contribui para os debates teóricos sobre relações

internacionais relacionais e oferece contributos práticos sobre como o capital cultural e a

colaboração económica podem, em conjunto, moldar parcerias sustentáveis.

Palavras-chave

Portugal, China, Macau, Guanxi, Efeitos de sinergia, Diplomacia Cultural.

How to cite this article

Wang, Yinkangni & Leandro, Francisco José B. S. (2026). Synergistic Dynamics of Sino–Portuguese

Partnership Policies: Implications for Economic and Cultural Cooperation. Janus.net, e-journal of

international relations. Thematic Dossier - Portugal and China in International Relations: Historical

Legacies and Contemporary Dynamics, VOL. 16, Nº. 2, TD2, February 2026, pp. 126-156.

https://doi.org/10.26619/1647-7251.DT0126.6

Article submitted on 23rd October 2025 and accepted for publication on 28th January

2026.

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e-ISSN: 1647-7251

VOL. 16, Nº. 2, TD2

Thematic Dossier - Portugal and China in International Relations: Historical Legacies

and Contemporary Dynamics

February 2026, pp. 126-156

Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

128

SYNERGISTIC DYNAMICS OF SINO–PORTUGUESE PARTNERSHIP

POLICIES: IMPLICATIONS FOR ECONOMIC AND CULTURAL

COOPERATION

YINKANGNI WANG

FRANCISCO JOSÉ B. S. LEANDRO

Introduction

The synergistic effects of Sino-Portuguese economic relations on bilateral trade and

cultural cooperation have grown increasingly significant in the context of globalization

and international diplomacy. As China exerts its influence through the Belt and Road

Initiative (BRI), its relationship with Portugal exemplifies a compelling model of

collaboration between a rising economic power and a traditional European partner. The

historical ties between these two nations, particularly through Macao, facilitate a unique

platform for cultural exchange, where economic interactions enhance cultural

understanding and bilateral cooperation.

China’s BRI has positioned Portugal as a strategic gateway to Europe, facilitating

infrastructure investments and cultural diplomacy initiatives. Leandro (2023) notes that

Sino-Portuguese relations have evolved over the last five decades, significantly

accelerating following the BRI's introduction in 2013. This relationship is characterized

by increased investments in infrastructure and shared cultural projects, fostering a robust

dialogue that strengthens ties in various domains, including education and cultural

exchanges (Leandro, 2023). 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). Sino-

Portuguese relations have deepened significantly since 2013, with Chinese investments

in Portuguese energy, finance, and infrastructure sectors exceeding €2.8 billion by 2021

(Ministry of Foreign Affairs of the People's Republic of China, 2022). Concurrently, cultural

programs, such as Confucius Institutes in Portugal and Portuguese language centers in

China, have fostered people-to-people ties, enhancing mutual trust and institutional

collaboration. These dynamics align with Bourdieu’s (1986) theory of cultural capital,

Acknowledgement: This project was generously supported by the University of Macau under

MYRG‑GRG2025‑00011‑FSS – Social Representations of China in the Lusophone World. The authors also

acknowledge the use of Microsoft Copilot and DeepSeek in supporting the preparation of visual data

presentations and in enhancing the clarity and academic style of the manuscript; Conflict of Interests: The

authors declare that there are no conflicts of interest associated with this study.

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VOL. 16, Nº. 2, TD2

Thematic Dossier - Portugal and China in International Relations: Historical Legacies

and Contemporary Dynamics

February 2026, pp. 126-156

Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

129

which posits that non-financial assets like education and social networks amplify

economic productivity. Similarly, Throsby (2001) posits that cultural industries are

distinctive in generating both economic value and cultural value, the latter encompassing

aspects like intangible heritage preservation.

The topic of the “guanxi” in Sino-Portuguese cooperation is an important starting point,

especially in the context of globalization, the exchange and integration of cultures of

different countries are becoming more and more frequent. In cross-cultural negotiations,

“guanxi” can facilitate smoother interactions by creating a foundation of trust and mutual

understanding (Chen & Chen, 2004). Furthermore, in the realm of international relations,

the concept of "functional power" has emerged as a significant area of study, examining

how power operates in specific functions and issue - areas. Functional power operates

through social relations and institutions, enabling actors to shape their circumstances

without resorting to force (Barnett & Duvall, 2005). This concept is crucial for

understanding how global governance is achieved and how states navigate complex

international issues. Portugal has emerged as functional power in international relations

by leveraging its historical legacy, cultural influence, and strategic partnerships.

Moreover, the significance of cultural diplomacy as a component of international relations

cannot be understated. The Portuguese-speaking community further amplifies these

interactions, positioning Portugal as a gateway for China into Europe while enhancing

cultural cohesion among Lusophone countries (Johnson, 2020). This multilayered

interaction emphasizes the importance of understanding the correlation effects of cultural

cooperation on economic ties as both nations navigate an increasingly interconnected

global landscape.

The relationship between China and Portugal has evolved significantly over the past

decades, with cultural engagement playing a crucial role in shaping economic

interactions. The research period from 2003 to 2024 is particularly significant due to

China's growing influence in Portuguese-speaking countries and the establishment of

strategic partnerships aimed at fostering economic collaboration (Leandro, 2025).

Methodologically, this study adopts a qualitative approach, building on frameworks from

“guanxi” theory, this research contributes to both theoretical and practical

understandings of international cooperation by addressing the underexplored synergistic

effects between cultural exchange and economic collaboration in the Sino-Portuguese

context. This study seeks to examine the interplay between economic and cultural factors

in the Sino-Portuguese relationship, addressing the following research question: What

are the synergistic effects of Sino-Portuguese cooperation on economic and culture in

both regions? By analysing existing literature and empirical data like policy documents,

this research aims to contribute to a deeper understanding of how “guanxi” shapes

international relations and how “guanxi” create the synergistic effects of economic and

cultural dynamics.

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Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

130

2. Literature Review

2.1 Correlation of Economic Cooperation and Cultural Exchange

The correlation between culture and economy is rooted in classical sociological theories.

Max Weber (2017) posited those cultural values, such as the Protestant work ethic,

catalysed capitalist development by promoting thrift and industriousness. This

perspective was later expanded by institutional economists like Douglass North (1990),

who argued that informal cultural norms complement formal institutions in shaping

economic behaviour. Contemporary studies operationalize culture through dimensions

such as trust, individualism, and social capital, which are theorized to influence economic

productivity and innovation. The bidirectional relationship between culture and economy

complicates causal inference. While trust fosters economic cooperation (Lorenz, 1999),

economic stability can also enhance societal trust. Trommsdorff (2009) define culture as

intergenerationally transmitted values and beliefs, and this may affect economic

decisions, such as investment and entrepreneurship (Guiso et. al, 2006).

Cultural capital, understood as non-financial assets such as education, traditions, and

social networks, has been widely recognized as a driver of economic productivity. Throsby

(2001) argues that cultural industries, including the arts and heritage tourism, generate

significant economic value while simultaneously safeguarding intangible cultural heritage.

Empirical evidence supports this claim; for instance, UNESCO’s designation of World

Heritage Sites often correlates with increased tourism revenue and local employment

opportunities (Canale et al., 2019). Similarly, Florida’s (2011) “creative class” theory

posits that cultural diversity within urban environments fosters economic innovation,

suggesting that tolerant and culturally vibrant cities attract talent and stimulate

entrepreneurial activity. These perspectives underscore the interdependence between

cultural assets and economic development, highlighting the strategic importance of

cultural capital in shaping sustainable growth and competitiveness in a globalized

economy.

Regional studies within single nations mitigate endogeneity issues prevalent in cross-

country analyses. For example, in China, Confucian values emphasizing relational

networks (guanxi) correlate with enhanced trust in business transactions but also with

favouritism that distorts market efficiency (Yang & Wang, 2011). Similarly, Greece’s

cultural heritage-driven tourism illustrates how localized cultural assets can directly

stimulate economic sectors (Kostakis & Lolos,2024).

Globalization has intensified interactions between economic markets and cultural

exchange. Guillén (2001) argues that multinational corporations (MNCs) leverage cultural

hybridization, blending local and global practices, to enhance market penetration. For

instance, McDonald’s adapts menus to regional tastes, merging economic efficiency with

cultural sensitivity (Ali & Santos, 2025). Such strategies illustrate “glocalization,” where

global brands achieve synergies by respecting local norms (Ritzer, 2003). Conversely,

Rodrik (2011) warns that rapid economic globalization can destabilize cultural identities,

sparking resistance movements (such as anti-WTO protests). These tensions underscore

the fragility of economic-cultural linkage when power imbalances persist.

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2.2 Functional power

2.2.1 The Evolution of Power Concepts and Functional Power

Traditional power concepts in international relations often revolved around military and

economic might, commonly referred to as hard power (Morgenthau, 1948). However, as

the international system became more complex, scholars began to investigate other

dimensions of power. Functional power is closely associated with functionalism, a

theoretical approach that emphasizes cooperation and problem-solving in international

relations. David Mitrany (1948), a pioneer of functionalism, argued that international

cooperation in technical and non-political areas could foster peace and integration. This

idea has evolved into the concept of functional power, which refers to a situational

attribute or capability that enables a state to assume a power-related role or influence in

international affairs that exceeds expectations based on its conventional capabilities

(Leandro, 2025). Unlike traditional classifications of comparative power status - such as

measuring military or economic might - functional power is not a hierarchical ranking of

sovereign actors. Instead, it describes a context-dependent capacity, often associated

with smaller states, to shape or disrupt international systems through strategic

partnerships with major powers or other actors (Leandro, 2025). It operates by shaping

the capacities of actors to address shared challenges, often through technical, economic,

or social collaboration rather than direct political or military force (Imber, 2020).

2.2.2 Portugal as a Functional Actor in International Relations

Portugal’s deep historical and linguistic ties with Lusophone countries in Africa, Asia, and

South America have positioned it as a mediator and advocate for these regions in

international forums. This role has been institutionalized through the creation of the

Community of Portuguese Language Countries (CPLP) in 1996, which Portugal helped

establish to strengthen cooperation among Lusophone nations. By leveraging its EU

membership and cultural capital, Portugal has consistently promoted the interests of

Lusophone partners in multilateral settings such as the United Nations, the European

Union, and Ibero-American Summits (Duarte et al., 2023; Mormul, 2020). These

relationships have allowed Portugal to act as a mediator between Europe and the Global

South, leveraging its historical ties to promote development and cooperation.

Portugal’s rich history and cultural heritage have served as a foundation for its cultural

power. Portuguese language and culture have spread globally, particularly in Portuguese-

speaking countries. In the economic realm, Portugal has been actively involved in

international trade and economic partnerships. Portugal has a diverse economy with key

sectors such as tourism, agriculture, and manufacturing. Its strategic location in the

Atlantic has made it an important hub for maritime trade (Medeiros, 2024). Additionally,

Portugal's membership in the European Union has provided it with access to a large

market and opportunities for economic cooperation. Portugal's role in regional and global

initiatives has also been a subject of study. In the context of the Belt and Road Initiative,

Leandro & Li (2025) discusses how Portugal has engaged with China's BRI, particularly

in areas such as infrastructure development and port cooperation. This cooperation has

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not only brought economic benefits but has also increased Portugal's geopolitical

significance. Moreover, Portugal's participation in international organizations like the

United Nations has allowed it to contribute to global discussions on issues such as climate

change and sustainable development.

Portugal has emerged as a functional power in international relations by leveraging its

historical legacy, cultural influence, and strategic partnerships. In contemporary times,

Portugal’s membership in the European Union (EU) and NATO has further enhanced its

role in shaping international policies, particularly in areas such as maritime security,

transatlantic relations, and development cooperation. As a member of the European

Union (EU) and the Community of Portuguese Language Countries (CPLP), Portugal plays

a significant role in promoting regional cooperation and cultural diplomacy. The CPLP has

been an important platform for promoting cultural cooperation and enhancing Portugal's

influence in regions such as Africa, Latin America, and Asia. Beyond that, its commitment

to multilateralism and participation in international organizations, such as the United

Nations and NATO, underscores its influence in global governance. By fostering economic

ties and advocating for sustainable development, Portugal enhances its soft power and

contributes to global stability.

2.3 “Guanxi”

2.3.1 Definition of “Guanxi”

Interpersonal relationship (guanxi) is one of the major dynamics of Chinese society.

Guanxi is a Chinese word that can be translated as "relationship" or "connection”, and it

plays an important role in Chinese society, economy and culture. Guanxi is often defined

as a system of social networks and relationships that facilitate mutual benefits and

obligations (Chen & Chen, 2004). It is characterized by trust, reciprocity, and long-term

commitment. According to Park and Luo (2001), guanxi operates on both personal and

organizational levels, influencing decision-making processes and resource allocation in

Chinese businesses, emphasizing that guanxi is not merely a transactional relationship

but a deeply rooted cultural practice that fosters loyalty and cooperation. The Guanxi

network is characterized by iterative obligations that structure social and professional

relationships, rather than serving as channels through which influence flows directly (Qin,

2009). Historically, Guanxi has demonstrated remarkable adaptability, evolving from its

roots in imperial China to its contemporary relevance in the era of market reforms. In

the present context, relational logic continues to shape patterns of action, influencing

how individuals and organizations pursue their objectives. To achieve these goals

effectively, actors must engage in global affairs proactively, decisively, and responsibly.

Such engagement, however, should not be undertaken blindly; it requires careful

consideration of the broader macro-level dynamics of international interaction. Whether

in bilateral or multilateral settings, the specific circumstances and interests of all parties

involved must be considered to ensure constructive and sustainable outcomes.

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2.3.2 “Guanxi” in China

Guanxi (关系), a foundational concept in Chinese social and business interactions, is

characterized by reciprocal obligations (bao), relational trust (xinyong), and the

preservation of social dignity (mianzi). China's "guanxi" culture is embodied in various

social and business activities, such as entrepreneurs' private social capital, academic

network, workplace relationship circle, e-buying and sales relationship, gift exchange

relationship, innovation and export ability of enterprises, and voting behaviour. It is in

this setting that xinyong (trustworthiness) - the reputation for meetings one obligations

to others gains its significance as “the most valuable asset” in the transactional web

of guanxi. The heuristics of guanxi suggests that changes in material capabilities

themselves reveal patterns in world affairs only when assessed in the context of

interactions. However, the ethical implications of guanxi have also been debated, as it

can sometimes lead to favouritism or corruption (Luo, 2008). Barbalet (2017) examined

"guanxi" in China as a form of gift exchange from the perspective of social exchange

theory and explored the key role of social emotions in exchange, and how informal

relations in China can be understood as "guanxi" as an information institution, thereby

expanding the scope of the concept of informal institutions and enriching our

understanding of relationships. Collectively, the Chinese "guanxi" culture and its nuanced

manifestations in various social and business activities is enhancing the understanding

of this unique social and cultural fabric of China (Bian, 2018).

2.3.3 The Role of “Guanxi” in People-to-people Exchange

Social rules are human constructions, yet these very rules reciprocally shape and

constitute human behaviour and identity (Onuf, 1989). This dialectical relationship

highlights how everyday interactions, including informal exchanges, construct and

reinforce social orders. People to people exchange (P2PE) is broadly defined as "direct

interpersonal engagement that transcends formal state-led diplomacy" (Cull, 2008).

People-to-people exchange (P2PE), such as educational programs or diaspora networks,

function as "rules-generating communities" that transcend state-centric diplomacy. It

encompasses activities such as educational exchanges, cultural festivals, tourism, and

professional collaborations. P2PE can be situated within the framework of soft power,

where grassroots interactions can build transnational networks of influence that

complement traditional statecraft (Nye, 2004). Bhandari et al. (2011) notes that P2PE

like student mobility cultivate global citizenship by exposing participants to diverse

perspectives, reducing stereotypes, and fostering intercultural competence. In P2PE

diplomacy, guanxi enables informal trust-building.

2.3.4 How “Guanxi” Works in International Relations?

In the field of international relations, guanxi functions as a culturally embedded

framework that shapes the strategic behaviour of Chinese leaders and diplomats in

foreign policy-making. Unlike dominant Western paradigms, which tend to emphasize

formal institutions, codified norms, and legally binding agreements, guanxi prioritizes

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informal networks, trust-based interactions, and relational diplomacy as central

mechanisms for achieving political objectives (Qin, 2018). This relational approach

underscores the significance of personal ties and reciprocal obligations in sustaining long-

term cooperation, thereby offering an alternative lens for understanding China’s

engagement in global governance and bilateral negotiations. The application of guanxi in

diplomacy has been particularly evident in China’s foreign policy. For instance, China’s

engagement with African nations has often relied on building strong personal

relationships with local leaders, fostering trust and cooperation (Brautigam, 2009).

Similarly, “guanxi” has played a role in China’s bilateral relations with neighbouring

countries, such as Vietnam and South Korea, where historical and cultural ties are

leveraged to strengthen political and economic partnerships (Womack, 2006). These

practices highlight how “guanxi” serves as a tool for soft power and influence in

international relations. While guanxi offers strategic advantages, it also presents

challenges in the context of international relations. Critics argue that reliance on informal

networks can undermine transparency and accountability, potentially leading to

corruption or favoritism (Su & Littlefield, 2001). Additionally, the cultural specificity of

“guanxi” may limit its applicability in global settings, where diverse norms and practices

coexist (Fan, 2002). These challenges underscore the need for a nuanced understanding

of “guanxi” in international relations.

2.4 Multiculturalism

Multiculturalism, as both a policy framework and sociocultural reality, has been

extensively debated across disciplines. It broadly refers to the recognition and

accommodation of cultural diversity within a society. Multicultural citizenship supports

minority rights, enabling cultural preservation and exchange within liberal democracies

(Kymlicka, 2012). It fosters intercultural dialogue, which is essential for meaningful

cultural exchange. Modood (2017) highlights how multicultural policies legitimize cultural

pluralism, creating spaces for communities to share traditions and values. Vertovec

(2007) introduces the concept of “super-diversity,” noting that complex migration

patterns enrich cultural landscapes and stimulate exchange. Also, multicultural policies

can enhance civic engagement and intercultural interaction, particularly when supported

by inclusive institutions (Ramakrishnan & Bloemraad, 2008).

Recent studies underscore the practical impact of multiculturalism on cultural exchange.

In contemporary settings, multiculturalism continues to serve as a catalyst for cultural

exchange, particularly in educational and international contexts (Zalli, 2024). Zapata-

Barrero (2017) argues that interculturalism, as an evolution of multiculturalism,

emphasizes proactive engagement and reciprocal learning. Together, these perspectives

reveal that multiculturalism not only accommodates diversity but actively cultivates

cultural exchange. By legitimizing diverse identities and encouraging interaction,

multicultural frameworks contribute to global empathy, innovation, and cooperation.

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Table 1. What is “Guanxi”?

Term

Guanxi

Short

definition

A network of long-term, reciprocal, trust-based social relations

Core elements

Trust; reciprocity; mianzi (face); long-term commitment

Mechanisms

Gift exchange; mutual aid; information sharing; repeated interaction

Levels

Individual; organizational; state

Economic

functions

Reduces information asymmetry; lowers transaction costs

Diplomatic

functions

Builds interpersonal trust; facilitates institutional platforms

Observable

indicators

Number of high-level visits; cultural projects; investment flows

Research

measures

Survey trust scores; counts of exchanges; process-tracing of events

Risks

Favouritism; reduced transparency; corruption vulnerability

Policy

implication

Institutionalize exchanges; increase transparency; strengthen oversight

Practical

example

Macau as a cultural and commercial bridge between China and Portugal

Source: Authors

3. Methodology

This study examines the interplay between cultural engagement and economic

cooperation in Sino-Portuguese relations, guided by the central research question: How

do China and Portugal build their “guanxi,” and under a guanxi-based perspective, what

are the synergistic effects of this relationship on economic and cultural dimensions?

Employing a qualitative research design, the study examines how relational practices

influence bilateral cooperation, focusing on the period from 2003 to 2024. By analysing

cultural dynamics alongside economic initiatives, the research seeks to uncover the

extent to which guanxi operates as a facilitating mechanism for trust-building,

reciprocity, and long-term collaboration. Empirical evidence is drawn from two

interlocking data streams. First, official policy documents of understanding and strategic

plans published by Chinese and Portuguese authorities, Forum Macao, and CPLP provide

the institutional record and formal commitments that structure bilateral interaction.

Second, annual trade and economic statistics compiled from international trade

databases and national statistical releases are used descriptively to situate qualitative

inferences within a time‑series of bilateral flows and to identify temporal inflection points

for further investigation. This approach provides a nuanced understanding of how

informal relational frameworks complement formal agreements, shaping the trajectory

of Sino-Portuguese engagement in both economic and cultural spheres.

The research framework for this study is illustrated in Figure 1. Adopting a dual-level

perspective - national and individual - this study investigates how historical diplomatic

events and policy decisions have shaped the development of guanxi between China and

Portugal. It further examines how this long-term relational framework influences the

synergistic interaction between economic cooperation and cultural exchange. At the

national level, the analysis focuses on state-led initiatives, bilateral agreements, and

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institutional mechanisms that foster trust and reciprocity. At the individual level,

attention is given to interpersonal networks, professional ties, and cultural engagements

that sustain and deepen bilateral relations. This integrated approach provides a

comprehensive understanding of how guanxi operates as both a structural and relational

force, shaping the dynamics of Sino-Portuguese collaboration across economic and

cultural domains.

Figure 1. Theoretical Framework

Source: Authors

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The study acknowledges limitations inherent to qualitative, case‑based research,

including constraints on generalizability, potential reporting asymmetries in official

statistics, and limited access to confidential commercial decision records; these

limitations are addressed by explicitly delimiting inference boundaries, using process

tracing to strengthen correlational claims, and recommending future quantitative tests

to assess the generalizability of the mechanisms identified.

4. The Synergistic Effects of Economy and Culture and the "Guanxi"

Theory

4.1 Building “Guanxi” from State-to-state Level

The Sino-Portuguese state visits from 2005 to 2024 (Table 1) reflects a deliberate and

sustained cultivation of guanxi. Each visit served not only as a formal engagement but

also as a symbolic reaffirmation of mutual respect, continuity, and emotional resonance

(qing) between the two nations. Portuguese President Jorge Sampaio’s 2005 visit to

China laid the groundwork for deeper political trust, while President Hu Jintao’s 2010 visit

to Portugal demonstrated China’s support during the European debt crisis, embodying

the principle of reciprocity (bao). The 2014 visit by President Cavaco Silva to China

reinforced cultural and educational ties, expanding the interpersonal networks essential

to guanxi. President Xi Jinping’s 2018 visit to Portugal marked a strategic milestone, with

the signing of the Belt and Road Initiative memorandum - Portugal becoming the first

Western European country to do so - signalling long-term commitment and shared vision.

In 2019, President Marcelo Rebelo de Sousa’s visit to China further deepened relational

trust through cultural diplomacy and economic cooperation. Most recently, the 2024

meeting in Lisbon between the Chairman of China’s National People’s Congress Standing

Committee and President Rebelo de Sousa reaffirmed institutional alignment and

legislative dialogue, extending guanxi beyond executive diplomacy into parliamentary

channels. Collectively, these visits illustrate how guanxi is built through repeated, high-

level interactions that blend formal agreements with symbolic gestures, fostering a

resilient and multidimensional Sino-Portuguese partnership.

The evolution of Sino-Portugal relations from 2003 to 2024 demonstrates a sophisticated

cultivation of "guanxi" that transcends mere diplomatic formalism (Table 2), building

instead a multi-level relational architecture anchored by Macao's unique role as a

Table 2. Key Sino-Portuguese State Visits

Year

Event

2005

Portuguese President Jorge Sampaio visits China

2010

Chinese President Hu Jintao visits Portugal

2014

Portuguese President Aníbal Cavaco Silva visits China

2018

Chinese President Xi Jinping visits Portugal

2019

Portuguese President Marcelo Rebelo de Sousa visits China

2024

Chairman of China's National People's Congress Standing Committee, meets with

Portuguese President Marcelo Rebelo de Sousa in Lisbon, Portugal

Source: Authors

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Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

138

sanctioned platform for trilateral engagement. This process was initiated with the

strategic establishment of the Forum for Economic and Trade Cooperation between China

and Portuguese-Speaking Countries (Forum Macao) in 2003, which institutionalized a

permanent channel for interaction that blends state and non-state actors. The

relationship was subsequently elevated to a Comprehensive Strategic Partnership in

2005, a move that signalled deep political trust (xinren) and created a framework for

sustained high-level engagement, which was critically reinforced by Portugal's pivotal

decision to become the first Western European nation to sign a Belt and Road Initiative

Memorandum of Understanding in 2018. Through a series of deliberate state visits and

the fostering of sub-national diplomacy, particularly leveraging Macao’s historical and

cultural capital as a bridge, the two states have effectively constructed a resilient network

that facilitates not only economic and political cooperation but also deep people-to-people

exchanges, thereby transforming a historical bilateral connection into a dynamic and

multifaceted partnership capable of navigating the complexities of contemporary

geopolitics.

As an international cooperation mechanism, the establishment of The Forum for

Economic and Trade Cooperation between China and Portuguese-speaking Countries

(Macao) (Forum Macao) was originally intended to promote institutionalized cooperation

between China and Portuguese-speaking countries in economic, trade, and investment

fields, providing valuable experience and ideas for the institutionalization of the "Belt and

Road Initiative". The construction of the Forum Macao was a successful example of the

"far distant and close integration" strategy of the Macao Special Administrative Region,

which not only supported the moderate diversification of Macao's economy but also made

it an important component of the platform for economic cooperation between China and

Portuguese-speaking countries, promoting equal and mutually beneficial economic

exchanges and cooperation.

During this period, the operational mechanism of the Forum Macao gradually improved.

Through regular ministerial meetings, entrepreneur conferences, and professional

training activities, it provided a platform for exchanges and dialogues among government

officials, business leaders, and experts from various countries. The core of these early

policies and events was to build a multilateral cooperation framework, with Macao as the

pivot, radiating throughout the Portuguese-speaking community, thereby injecting new

Table 3. Key Sino-Portuguese Diplomatic Policy and Major Events

Year

Event

2003

Establishment of The Forum for Economic and Trade Co-operation between China and

Portuguese-speaking Countries (Macao)

2005

Comprehensive Strategic Partnership

2016

Macao serves as the "one base, one platform, and one centre"

2017

Portugal and China have maintained a “blue partnership” aimed at reinforcing

collaboration in maritime and commercial projects

2018

Portugal formally joined China's Belt and Road Initiative

2024

Strategic Plan for Economic and Trade Cooperation (2024–2027)

2024

China-Portuguese Speaking Countries Economic and Trade Expo (Macao)

Source: Authors

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vitality into the bilateral cooperation between China and Portugal. The establishment of

the Forum Macao itself reflected China's policy intention to establish a long-term and

stable partnership with Portuguese-speaking countries, especially Portugal. This

institutionalized cooperation mechanism laid the foundation for deeper economic and

cultural interactions and began to cultivate a "guanxi" network based on a common

platform and common interests. Especially the cooperation in response to the COVID-19

pandemic, further demonstrated the resilience and value of this "relationship" in times

of crisis, through joint responses to challenges, further consolidating mutual trust and

cooperation intentions (Verly-Miguel, 2024). The proposal of the BRI in 2013 brought

unprecedented development opportunities for the China-Portuguese partnership,

marking the entry of the bilateral cooperation into a new strategic stage. Portugal, as an

important gateway connecting the Atlantic and Africa, its strategic geographical location

makes it a key node of the 21st Century Maritime Silk Road (Leandro,2023). Portugal

views the "Belt and Road Initiative" as an important opportunity to enhance its diplomatic

relations and its economic position within the European Union.

Under the framework of the "Belt and Road Initiative", the economic cooperation between

China and Portugal has shown a significant growth trend. Chinese investment in key

sectors of Portugal has increased significantly, covering energy, finance, infrastructure,

and other fields. China seeks economic benefits and builds organized global geopolitical

influence through providing global public goods and stable bilateral relations. This

indicates that China's investment in Portugal is not merely a commercial act, but has

deeper strategic considerations, aiming to build a more stable bilateral "relationship"

through economic cooperation.

Table 4. Major Events and its Impact

Events

Objective

The “Guanxi”

Strategy

Results

Forum

Macao

(Since

2003)

Promote economic and

trade cooperation

between China and

Portuguese-speaking

countries

Institutionalized

dialogue, multilateral

platforms, common

interests

Trade and investment

facilitation, strengthened

role of the Macao as

platform, and crisis

cooperation

The Belt

and Road

Initiative

(Since

2013)

Global interconnection,

infrastructure

construction, and

strategic cooperation

Long-term investment,

strategic partnership,

and geopolitical

influence

Energy financial

investment, expansion of

the digital economy, and

deepening of strategic

mutual trust

The Macao

One

Platform

Strategy

Connecting China with

Portuguese-speaking

countries and

promoting economic

diversification

Cultural affinity,

historical ties, and

central government

support

Cultural exchange hub,

tourism and leisure

centre, and regional

economic pivot

The

Guangdong-

Hong Kong-

Macao

Greater Bay

Area (GBA)

Policy

Regional integration

and innovative

development

Regional institutional

cooperation, resource

sharing, and

coordinated

development

The international influence

of Macao has increased,

its economy has become

more diversified, and the

innovation ecosystem has

been optimized.

Source: Authors

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and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

140

During this period, the strengthening of the platform role of Macao, the emergence of

digital economy cooperation, the deepening of cultural and educational cooperation, and

the integrated development of the Guangdong-Hong Kong-Macao Greater Bay Area

(GBA) collectively formed the multi-dimensional paths for the deepening of the

"relationship" between China and Portugal. In terms of culture and education, the "Third

Forum of the World Sinology Research Society" held by the University of Macao and the

Portuguese language cultural policies all highlighted the importance of cultural exchange

in the construction of the "relationship" (Feng & Ye,2020). Moreover, the integrated

development of the GBA enhanced Macao's regional status and international influence,

enabling it to play a more significant role in building a broader "guanxi" network (Tang

et al., 2024).

However, the economic and cultural cooperation promoted by the China-Portugal

partnership policy is not developed in isolation; instead, it presents a complex interaction

mechanism that jointly constitutes a profound synergy effect (Table 3). This synergy

effect enables the overall benefits of the bilateral relationship to exceed the sum of the

benefits of each part, embodying the core idea of the "guanxi", that is, through

interaction and coordination among the components, an overall effect beyond the simple

addition of individual parts can be generated.

4.2 Building “Guanxi” from People-to-people Level

China and Portugal have systematically built people-to-people "guanxi" through targeted

educational and cultural exchanges that leverage historical ties and create lasting

interpersonal connections (Table 4). Multiculturalism converts discrete people‑to‑people

activities into a durable mechanism for building guanxi by legitimizing plural identities,

structuring repeated intercultural contact, and institutionalizing reciprocity. By hosting

large-scale cultural and festival events, including traditional music and dance

performances, film festivals and art exhibitions, Macao has been transformed into a

vibrant living room for cultural exchanges between China and Portugal. Since 2018, the

Macao Special Administrative Region Government has successfully held the "Meet in

Macao - China-Portugal Cultural and Art Festival" consecutively

. Beyond Macao, these

exchanges extend to mainland Portugal through events like the "Cultural Market in the

Candlelight", which featured Chinese calligraphy and dragon dances, and the "China Day"

at the Lisbon International Handicraft Fair, making Chinese culture increasingly

accessible to the Portuguese public

. The educational bridge is fortified by Portugal's

active recruitment of Chinese students, with five major Portuguese universities

presenting their programs at the China Education Expo to establish formal academic

Liu, Z. Y. (2025, May). 中国式现代化与澳门经济发展—澳门在国家新发展格局中的战略定位与发展策略 [Chinese-style

modernization and Macao’s economic development – Strategic positioning and development strategies in the

national new development pattern]. 澳門經濟學會. Retrieved from

https://www.macaueconomy.org/downloads/research/%E3%80%8A%E4%B8%AD%E5%9C%8B%E5%BC%

8F%E7%8F%BE%E4%BB%A3%E5%8C%96%E8%88%87%E6%BE%B3%E9%96%80%E7%B6%93%E6%BF

%9F%E7%99%BC%E5%B1%95%E3%80%8B.pdf

Xinhua. (2017, July 11). Xi calls for building strong army through reform. Xinhua News Agency. Retrieved

from http://www.xinhuanet.com/english/2017-07/11/c_136433308.htm

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Yinkangni Wang, Francisco José B. S. Leandro

141

protocols, complementing the network of Confucius Institutes in Portugal that popularize

Chinese language studies

. Similarly, the Confucius Institute at the University of Porto -

established in partnership with Guangdong University of Foreign Studies - serves as a

key platform for promoting linguistic and cultural exchange through Chinese language

instruction and cultural workshops, thereby reinforcing an educational bridge between

the two countries. Complementing these efforts are targeted student mobility programs

designed for Chinese undergraduates specializing in Portuguese studies.

Concurrently, tourism initiatives such as Portugal’s pavilion at the ITB China fair,

supported by high-level diplomatic engagement, aim to stimulate human mobility, with

an ambitious target of attracting 500,000 Chinese tourists annually by 2026

. Between

the mid‑2010s and 2019, Portugal experienced steady growth in international visitors

and a notable increase in Chinese tourists. Official reporting cited a 16% rise in Chinese

guests in 2019, at a time when Portugal recorded a record 27 million total visitors that

year, signalling China’s emergence as an important source market (FM, 2020).

The pandemic produced the expected collapse in cross‑border travel in 2020, but the

recovery trajectory since 2022 has been strong globally and especially pronounced for

China after the lifting of strict travel restrictions: Chinese outbound departures surged in

2023, with government figures showing tens of millions of departures in the first half of

that year alone (Irwin-Hunt, 2023), reflecting a rapid normalization of outbound demand.

Portugal’s tourism statistics reflect an increasingly ambitious strategy to leverage the

sector’s post‑pandemic recovery. In the first quarter of 2024 alone, the country recorded

57,740 visitors from China, and authorities have since articulated targets of attracting

500,000 Chinese tourists and generating one million overnight stays by 2026 -

demonstrating a concerted policy effort to strengthen bilateral tourism flows (Portugal

Global, 2024).

Embassy of Portugal in Beijing. (2025). China Education Expo 2025. Retrieved from

https://pequim.embaixadaportugal.mne.gov.pt/en/the-embassy/news/china-education-expo-2025

Jing Daily. (2024, October 18). From heritage to luxury: Porto’s bid for Chinese tourism. Retrieved from

https://jingdaily.com/posts/from-heritage-to-luxury-porto-s-bid-for-chinese-tourism

Table 5. People-to-people Exchange

Mechanism

Event

Educational

& Language

Institutions

Five Confucius Institutes in Portugal (such as the University of Lisbon,

University of Coimbra); Portuguese language programs in mainland Chinese

universities.

Immersive

Cultural

Programs

Summer camps in China for Portuguese youth (such as the Instituto

Confúcio at the University of Porto); programs include language practice,

calligraphy, and visits to historical sites.

Historical &

Social

Integration

Centuries of Sino-Portuguese intermarriage and cultural blending in Macao,

creating a distinct Macanese community and shared cultural relics

Cultural

festivals

"Encounter in Macao" festival, Macao Arts Festival, Festival do Oriente

(Lisbon).

Source: Authors

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142

The tourism rebound both reflects and reinforces closer Sino‑Portuguese relations

because sustained people‑to‑people exchange builds familiarity, business networks, and

cultural ties that lower transaction costs for trade and investment and create

constituencies in both countries that favour deeper cooperation. In short, the tourism

statistics and official ambitions from 2015 through 2024 provide empirical evidence that

interpersonal connectivity is recovering and expanding, and that tourism is an active

channel through which Sino‑Portuguese relations are becoming more tightly integrated.

In addition, student mobility is not merely a flow of people; it is a mechanism for building

interpersonal networks that underpin guanxi when framed by multiculturalist institutional

practices. Chinese student presence in Portugal grew substantially in the 2010s, rising

from about 1,839 Chinese students in 2010/2011 to 4,053 in 2018/2019 (a +54.4%

increase), with notable growth in higher‑education and postgraduate enrolments (Ni Hao

Portugal, 2019); these mobility flows create repeated, institutionalized contacts that

multicultural policies can convert into durable guanxi.

In the Sino‑Portuguese case, cultural diplomacy instruments exemplify how

multiculturalist practices institutionalize respect for difference and thereby amplify the

trust‑building function of guanxi. Consequently, people‑to‑people guanxi in this bilateral

relationship is not only a product of informal reciprocity but is actively shaped and

sustained by multiculturalist institutions that translate cultural capital into predictable,

institutionalized channels for economic and diplomatic cooperation. Together, these

multifaceted and sustained interactions across culture, education, and travel create a

robust foundation of shared experiences and mutual appreciation, effectively cultivating

the deep social and relational capital that characterizes strong people-to-people "guanxi."

4.3 The Synergistic Effects

4.3.1The Economic Cooperation Based on Building “Guanxi”

Figures 2 & 3 show the bilateral trade data between China and Portugal from 1992 to

2024, revealing a demonstrable synergy between the establishment of high-level

diplomatic frameworks and the acceleration of economic exchange. The foundational

period (1992-2002) shows modest but stable growth (Figure 2), with total trade

increasing from approximately $44.0 million in 1992 to $307.8 million in 2002. This phase

established the basic commercial corridor between the two nations. A significant

structural shift occurred post-2003, coinciding with the establishment of the Forum

Macao. This institutional innovation provided a dedicated mechanism for engagement,

correlating with a notable surge: bilateral trade grew by 99% from $406.3 million in 2003

to $911.95 million in 2005.

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Figure 2. China-Portugal Bilateral Trade and Key Events (1992-2024)

Source: Authors based on UN Comtrade database using R Programming Language.

Figure 3. Portugal-China Bilateral Trade and Key Events (1992-2024)

Source: Authors based on UN Comtrade database using R Programming

Language.

https://comtradeplus.un.org/TradeFlow?Frequency=A&Flows=X&CommodityCodes=TOTAL&Par

tners=0&Reporters=all&period=2024&AggregateBy=none&BreakdownMode=plus

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The formal elevation of relations to a Comprehensive Strategic Partnership in 2005

marked a critical inflection point, embedding economic objectives within a broader

framework of political and strategic trust. The data indicates this commitment acted as

a powerful catalyst for exponential growth. In the three years following this agreement

(2005-2008), total trade volume nearly tripled, soaring from $911.95 million to an

unprecedented $2.31 billion. This period of rapid expansion underscores how a deepened

political commitment directly facilitated a more ambitious scale of commercial

interaction, building resilience that helped trade weather the global financial crisis, with

volumes recovering to $2.51 billion by 2010.

The most dramatic growth phase commenced in the 2010s, powered by a series of

targeted and complementary cooperative initiatives. The strategic enhancement of

Macao's role as a "One based, one centre, one platform" from 2016 and the launch of

the Blue Partnership in 2017 created specialized channels for maritime and commercial

collaboration. These were synergistically amplified by Portugal's formal participation in

China's Belt and Road Initiative in 2018. The integration into this vast connectivity

agenda is starkly reflected in the trade figures: from $5.99 billion in 2018, bilateral trade

climbed to a historic peak of $9.01 billion in 2022, representing a remarkable 50%

increase in just four years. This trajectory highlights how aligning bilateral economic

interests with a mega-strategic vision can unlock unprecedented growth.

The robustness and maturity of the trade relationship are further evidenced by its

performance through recent global challenges. Despite worldwide pandemic disruptions

and economic volatility from 2020 onward, Sino-Portuguese trade not only remained

stable but continued to scale new heights, demonstrating significant resilience. This

stability provides a strong foundation for the next phase of cooperation, as formalized by

the Strategic Plan for Economic and Trade Cooperation (2024–2027) and the 2024 China-

Portuguese Speaking Countries Economic and Trade Expo in Macao. These new

institutional tools are proactively designed to guide future growth, moving the

relationship from a pattern of reactive growth following diplomacy to one of proactively

managed co-development.

The empirical evidence from 1992 to 2024 supports the thesis of a strong positive

correlation between diplomatic deepening and trade expansion. Each major diplomatic

event corresponds to a clear, measurable acceleration in the growth rate of bilateral trade

volumes. The “guanxi” has evolved from a simple, low-volume exchange into a complex,

high-value partnership where political frameworks actively shape and secure economic

outcomes. The consistently high trade levels maintained through recent turbulence and

the forward-looking nature of the 2024 Strategic Plan confirm that this synergy is now a

durable, institutionalized feature of Sino-Portuguese relations, ensuring that shared

diplomatic ambition will continue to be the primary engine for shared economic

prosperity.

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The analysis of the Harmonized System (HS) classification revision evolution (Figure 4)

reveals that the statistical framework for China-Portugal trade has undergone seven

iterations since 1992, closely synchronizing with international revision cycles. The shift

from a period of long-term stability (H0) to one of accelerated iteration (H1-H6) visually

underscores the increasing complexity and formalization of bilateral trade. The rapid

adoption of HS 2017 (H5) around 2017, coinciding with the deepening of bilateral

economic relations under the Belt and Road Initiative, demonstrates how modernized

rules infrastructure enabled the capture of more sophisticated trade flows. This provides

Figure 4. Evolution of HS Classification in China-Portugal Trade

(1992-2025) (percentage share of total value by HS)

Source: Authors based on UN Comtrade database using R Programming Language.

Figure 4A. Evolution of HS Classification in China-Portugal Trade

(1992-2025)

Source: Authors based on DeepSeek AI to create visuals

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a methodological lens through which the qualitative transformation of the economic

partnership can be understood.

Key diplomatic events correlate with noticeable trade accelerations (Figure 5). The 2005

"Strategic Partnership" announcement preceded significant trade expansion, while

President Hu Jintao’s 2010 visit to Portugal coincided with trade surpassing $2.8 billion.

The 2017 "Blue Partnership" initiative on ocean cooperation was launched during a period

of robust trade growth. These patterns suggest that political relations significantly

influence economic outcomes in this bilateral relationship.

China’s Foreign Direct Investment (FDI) into Portugal has evolved in close connection

with key diplomatic milestones between the two countries (Figure 6), illustrating how

strengthened political relations can enhance economic cooperation. In the early 2000s,

FDI flows were minimal, often recorded at zero, despite the establishment of the Forum

Macao in 2003 and the elevation of ties to a Comprehensive Strategic Partnership in

2005. These foundational diplomatic steps laid the groundwork for future engagement

but did not immediately translate into significant investment, suggesting that institutional

frameworks require time to foster tangible economic outcomes.

Figure 5. HS Classification and Total China-Portugal Trade Value

(1992-2024) in millions USD

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A noticeable shift began around 2012, when FDI started to increase gradually,

culminating in a remarkable peak of USD 949 million in 2014. This surge coincided with

the state visit of Portuguese President Aníbal Cavaco Silva to China in the same year,

which reinforced bilateral trust and likely encouraged major Chinese investments in

Portugal’s energy, finance, and infrastructure sectors. The high-level engagement

appeared to serve as a catalyst, boosting investor confidence and accelerating capital

inflows.

Subsequent years saw sustained investment levels, supported by further diplomatic and

logistical advancements. In 2017, the launch of the Blue Partnership and the inauguration

of the first direct flight between China and Portugal enhanced maritime cooperation and

connectivity, facilitating trade and people-to-people exchanges. FDI remained substantial

during this period, reflecting how diversified forms of collaboration help maintain

economic momentum. President Marcelo Rebelo de Sousa’s visit to China in 2019 further

solidified political ties, contributing to continued economic interaction despite global

uncertainties.

Looking ahead, the announcement of a new Strategic Plan in 2024 signals a shared

intention to deepen long-term cooperation. While recent FDI figures show some

fluctuation, the consistent pattern suggests that diplomatic engagement often precedes

or accompanies shifts in economic flows. This demonstrates that strengthened diplomatic

relations not only foster political trust but also create an enabling environment for cross-

border investment, thereby supporting the broader argument that diplomacy and

economic development are mutually reinforcing.

Figure 6. China’s FDI Flows to Portugal (2003-2024)

(Annual inward FDI from China to Portugal in millions USD)

Source: Authors based on OECD database using R Programming Language. Retrieved from

https://www.oecd.org/en/data/indicators/inward-fdi-flows-by-partner-country.html?oecdcontrol-

chart-control-3cc634ae0b-var3=2023&oecdcontrol-chart-control-aa4877b865-

var6=CHN&oecdcontrol-chart-control-9813c4b8ed-var1=PRT

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4.3.2 The Promoting Effect of Economic Cooperation on Cultural

Exchanges

The deepening of economic cooperation has established a solid material foundation and

an expansive institutional platform for cultural exchange. The expansion of trade and

investment flows has directly facilitated increased cross‑border mobility, including

business travel, technical cooperation, and labour mobility. These forms of interaction

themselves constitute important channels of cultural exchange, contributing to the

dissemination, interaction, and mutual adaptation of cultural practices. Chinese

investment in Portugal not only introduces capital and technology, but also transfers

managerial practices and corporate cultures associated with Chinese enterprises.

Conversely, Portugal provides an entry point through which Chinese firms and their

organizational cultures engage with European markets and societal contexts.

Economic growth further enables cultural exchange by generating financial resources that

can be reinvested in cultural initiatives, such as heritage preservation, art and cultural

festivals, and educational exchange programs. In this regard, the Forum for Economic

and Trade Cooperation between China and Portuguese‑Speaking Countries (Forum

Macao) plays a significant facilitating role. While its primary mandate is to promote

economic cooperation, Forum Macao also offers financial support and institutional

platforms for cultural exchange initiatives. Moreover, its engagement in global health

cooperation, including the international promotion of traditional Chinese medicine,

underscores the extent to which such cultural initiatives are underpinned by sustained

economic collaboration.

Beyond material support, institutionalized mechanisms of economic cooperation also

enhance the infrastructural conditions for cultural exchange. As an economic cooperation

platform within the China–Portugal framework, conferences, exhibitions, and exchange

programs organized under the auspices of Forum Macao frequently incorporate cultural

components, thereby integrating economic objectives with cultural engagement. Macao’s

role as a commercial and diplomatic intermediary between China and

Portuguese‑speaking countries is further reinforced by its moderately diversified

economy, particularly the vitality of its tourism and leisure industries, which provide

important conduits for cross‑cultural interaction. Similarly, external policy frameworks

and regional integration constitute core drivers of Macao’s tourism symbiosis,

demonstrating how economic policies and regional connectivity directly support the

development of cultural tourism and, in turn, reinforce cultural exchange (Li et al., 2024).

4.3.2 The Enabling Role of Cultural Exchange in Economic Cooperation

Cultural exchange plays an indispensable enabling role in economic cooperation. It

creates a more favourable social environment for economic cooperation by enhancing

mutual understanding, building trust, and reducing communication costs. Firstly, cultural

understanding can effectively reduce "cultural discounts" and communication barriers in

economic cooperation, and reducing cultural discounts requires attention to information

dissemination, decoding, and identification. Through cultural exchange, people of the two

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countries can better understand each other's ways of thinking, values, and behavioural

norms, thereby reducing misunderstandings and frictions in business negotiations,

project management, and daily communication. When people of the two countries

establish emotional connections and mutual respect through cultural exchange, this trust

will naturally extend to the economic field. From the perspective of the "guanxi" theory,

this trust is beyond legal contracts and can effectively reduce transaction risks and

promote long-term cooperation. China builds its geopolitical influence by providing global

public goods and stable bilateral relations. The construction of "stable bilateral relations",

to a large extent, relies on the mutual understanding and trust brought about by cultural

exchange, which also indirectly confirms the driving effect of political and cultural

"guanxi" on economic cooperation.

Secondly, cultural exchanges serve as catalysts for new growth opportunities and

creative drivers of economic cooperation. Interactions between China and Portugal in

domains such as traditional arts, gastronomy, and design have the potential to generate

collaborative projects within cultural and creative industries. Macao exemplifies this

dynamic as a model of Sino-Portuguese cultural integration, where its distinctive cultural

hybridity functions as an economic asset capable of attracting tourism investment and

stimulating cultural industry development. Macao’s cultural policies, which emphasize the

preservation and promotion of Portuguese heritage, represent not only a commitment to

cultural safeguarding but also a strategic approach to leveraging cultural assets for

economic vitality. Furthermore, educational cooperation fosters language acquisition and

expands transnational networks, cultivating a pool of talent with cross-cultural

competencies. These individuals act as bridges in economic partnerships, facilitating

innovation, knowledge transfer, and the creation of sustainable collaborative

frameworks.

Table 6. The Synergistic Effects of the China-Portugal Partnership Policy on

Economic and Cultural Cooperation.

Dimensions

Economic

Cooperation

Cultural

Engagements

Synergistic Effects

The

“Guanxi”

mechanism

Interests linkage,

long-term

investment,

institutionalized

platform

Emotional

connection, mutual

understanding,

shared values

Economic cooperation

provides the "foundation" for

the "relationship", while

cultural exchange deepens

the "content" of the

"relationship".

Major

drivers

Market demand and

policy guidance (BRI,

China-Portugal

Forum)

Cultural diplomacy,

historical heritage,

educational

promotion

The policy integrates

economy and culture, jointly

driving the development of

"relationships".

Impact on

each other

Provide material

support, enhance

personnel exchanges,

and create a

cooperation platform

Reduce "cultural

barriers", build trust,

and provide creative

sources

Economy provides resources

for culture, while culture

creates an environment for

the economy.

Macao’s role

Business cooperation

service platform,

regional economic

hub

Cultural Integration

Center, Promoter of

Portuguese Culture

Macao is an amplifier and

core hub for the synergy

between economy and

culture.

Source: Authors

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Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

and Cultural Cooperation

Yinkangni Wang, Francisco José B. S. Leandro

150

The interaction between economic and cultural cooperation has generated a profound

synergistic effect, enabling the China-Portugal partnership to exhibit a comprehensive

and sustainable trajectory of development. This synergy manifests in several dimensions

(Table 5). Economic cooperation, facilitated through personnel exchanges and shared

interests, continuously expands and deepens the relational network between the two

countries. Concurrently, cultural exchanges foster mutual understanding and trust,

thereby enhancing the quality and resilience of these relationships. This mutually

reinforcing cycle creates a cumulative process of “relationship capital,” producing a

virtuous spiral of upward development. At the macro level, initiatives such as the Forum

for Economic and Trade Cooperation between China and Portuguese-speaking Countries

and the Belt and Road Initiative exemplify this synergy. These frameworks not only

stimulate economic growth but also provide institutional guarantees and practical

platforms for cultural interaction, reinforcing the interdependence of economic and

cultural dimensions in bilateral cooperation. Macao's unique position within the China-

Portugal partnership makes it an amplifier of economic and cultural synergy. Macao is

not only an important platform for economic and trade exchanges between China and

Portugal, but also a living museum of cultural integration between the two countries. Its

positioning as a "World Tourism and Leisure Centre" and a "Platform for Business

Cooperation between China and Portuguese-speaking Countries" enables it to integrate

economic functions with cultural functions. For instance, by holding international cultural

and artistic festivals, attracting tourists and artists from Portuguese-speaking countries,

it not only promotes cultural exchanges but also boosts the tourism economy. At the

same time, the Portuguese language education and promotion in Macao also provide

talent and cultural support for Chinese enterprises to enter the markets of Portuguese-

speaking countries. Macao should seize the opportunity of the Deep Integration Zone and

ride on the fast train of national development. This is precisely the hope that Macao can

better play its unique role in the coordinated development of economy and culture.

The success of the China-Portugal partnership policy lies in its comprehensive

consideration of the economic and cultural aspects. For instance, under the "Belt and

Road" initiative, not only are there infrastructure investments and trade exchanges, but

also emphasis is placed on cultural exchanges and the fostering of mutual understanding

among the people. This policy design aims to drive cultural exchanges through economic

cooperation, and then use cultural exchanges to nourish economic cooperation, thereby

achieving comprehensive and balanced development. The experience of regional

government cooperation also indicates that establishing a favourable institutional

environment, reasonable organizational arrangements, and regional cooperation rules is

a rational choice for achieving integration. The China-Portugal partnership has achieved

deep synergy in the economic and cultural fields through this institutionalized

cooperation. When economic and cultural factors achieve a deep synergy, the relationship

between the two countries will demonstrate greater resilience when facing external

challenges. Even when there are frictions in certain economic fields or global geopolitical

tensions intensify, the profound cultural understanding and trust foundation can play a

buffering role, preventing the relationship from deteriorating completely. The perception

of security threats can affect economic cooperation preferences, but the trust established

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Synergistic Dynamics of Sino–Portuguese Partnership Policies: Implications for Economic

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Yinkangni Wang, Francisco José B. S. Leandro

151

through cultural exchanges between China and Portugal can, to a certain extent,

counteract this negative impact and maintain the stability of cooperation.

In general, the policy of the China-Portugal partnership has established a dynamic and

mutually reinforcing mechanism between economic and cultural cooperation, resulting in

a significant deep synergy effect. Economic cooperation provides a material foundation

and platform, facilitating personnel mobility and cultural exchange; while cultural

exchange enhances understanding, builds trust, and reduces communication costs,

providing strong social capital and favorable conditions for economic cooperation. Macao,

as the core hub of this collaborative process, further amplifies this effect. This deep

synergy of economic and cultural interaction not only improves the overall quality of the

China-Portugal relationship but also lays a solid foundation for the two countries to jointly

address global challenges and achieve common development in the future.

5. Conclusion

This study has conducted an examination of Sino–Portuguese policies and diplomatic

engagement from 2003 to 2024, assessing how these mechanisms collectively shape the

evolving nexus between economic cooperation and cultural exchange. Grounded in a

relational analytical framework, the findings demonstrate that accumulated trust,

reciprocity, and sustained commitment constitute a form of guanxi capital. This capital

functions alongside formal institutional arrangements to reduce transaction costs,

facilitate information flows, and stabilize mutual expectations. Although the study does

not establish a direct causal relationship, the analysis reveals a noteworthy correlation

between the growth of guanxi capital and the intensification of bilateral economic and

commercial activity, suggesting that relational dynamics and economic interactions have

evolved in mutually reinforcing ways over time. Within this perspective, the synergistic

effects of cooperation are observable across both national contexts. Returning to the

central research question - How do China and Portugal construct guanxi, and what

synergistic effects does Sino–Portuguese cooperation generate across the economic and

cultural spheres in both regions? - the study advances three principal conclusions.

First, at the economic level, diplomatic events and bilateral mechanisms have

institutionalized opportunities for trade, investment, and infrastructure development.

These platforms and the “guanxi” built expand personnel exchanges, diversify sectoral

linkages, and deepen network density, thereby strengthening the relational architecture

that underpins cross-border commerce.

Second, at the cultural level, sustained exchanges cultivate mutual intelligibility and

trust, enhancing resilience within the bilateral relationship. Macao’s unique position, as a

locus of Sino–Portuguese cultural hybridity and a policy emphasis on Portuguese

heritage, illustrates how symbolic assets and cultural policies function as economic

resources, attracting tourism and catalysing cultural-industry development. Importantly,

multiculturalist activities and practices do not merely accompany cultural exchange, they

actively shape the conditions under which guanxi can be institutionalized and scaled. By

legitimizing plural identities, creating institutional venues for intercultural encounter, and

embedding cultural exchange within informal cooperation agendas, multiculturalism

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increases the salience and durability of relational capital, thereby making economic

cooperation more resilient to adversity and more amenable to long‑term commitments.

Third, the synergy across economy and culture operates as a virtuous cycle: economic

cooperation finances and platforms cultural engagement, while cultural engagement

reduces communication costs, mitigates “cultural discount,” and widens the social base

for joint ventures. In both regions, this mutual reinforcement translates into higher-

quality partnerships, enhanced adaptability to uncertainty, and more sustainable

development trajectories.

Looking ahead, future research should employ longitudinal mixed methods to trace the

quantitative and qualitative evolution of guanxi capital, examining how trust generated

by cultural interactions translates into measurable reductions in contractual and

coordination costs. Further inquiry might also examine sectoral pathways, such as

renewable energy, fintech, and creative industries, through which economic

collaborations produce new cultural content and exchanges, thereby renewing the stock

of guanxi and consolidating the cooperative ecosystem over time.

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