Though China is the second largest economy in the world and Monaco the second smallest country by area, there are a lot of opportunities for cooperation between the two sides. 

China and Monaco established diplomatic relations in 1995, after which bilateral relations developed steadily. The exchanges between the two countries have set an example of treating each other as equals despite the difference in size. Prince Albert II paid 10 visits to China, to attend world athletics championships and other activities held in Beijing, which enhanced the mutual understanding between the two countries.

President Xi Jinping's visit to Monaco is the first time for the country to receive a Chinese head of state. This visit is also a good opportunity to observe and analyze bilateral relations. Although the two countries are far apart in scale and far away from each other, there is a lot of potential for cooperation.

Bilateral trade is on the rise. In 2017, the bilateral trade volume was 20 million U.S. dollars. However, this number increased rapidly in 2018, reaching 125 million U.S. dollars in the first eight months, a year-on-year increase of more than 800 percent.

Although Monaco is a small economy, some of its products are competitive in the fields of chemical, medicine and cosmetics industry. The country can benefit a lot more if it can have more access to the huge Chinese market. For the Chinese economy, although Monaco's market is limited, bilateral trade is growing rapidly, which can further tap its potential in the future.

Monaco has a more developed service sector than its manufacturing industry. Many high-income people from France, Italy and other countries live in Monaco. The country has the highest housing prices in the world and strong demand for financial services.

With a territory of about 2 square kilometers, there are dozens of banks including some famous international financial institutions. Although Monaco is not a member of the European Union, Euro circulate freely here. Monaco's tourism industry is also very developed, many large international conferences were held here. Annual visitors to the country are more than 300,000.

With the good economic, social and natural environment, Monaco is attractive to Chinese enterprises and tourists. In particular, Monaco residents have high incomes and high requirements on the quality of life. The country intends to create "the best quality of life in the world".

Compared with the conservative policies of some western countries, Monaco is pragmatic and welcoming to technology and investment from China. Bilateral cooperation has made important progress. In 2017, Monaco signed a strategic cooperation agreement with the Alipay, giving nationwide merchants access to the Alipay.

The cooperation between Morocco and Huawei is also productive, with Morocco hoping to apply 5G technology to autonomous driving, smart city, medical treatment, games and other fields, so as to improve the quality of life of local people.

For China, the mutually beneficial cooperation with Morocco, showing a win-win result, can also alleviate some countries' concerns about the use of China's 5G equipment.

In addition, Monaco attached great importance to sustainable development, marine development and green economy. During Prince Albert II's visit to China last year, he was impressed by China's ecological protection. The two sides can deepen cooperation in this area.

In summary, President Xi's visit is expected to further promote mutual understanding between the two sides and promote more practical cooperation.