CIIE: Opportunities to neighboring ASEAN countries
Chinese President Xi Jinping announced the commencement of the world’s first import-themed nationallevel expo in Shanghai on November 5, calling it a “trailblazing” move in the history of international trade development.
A total of 172 countries, regions and international organizations from five continents are showcasing their development achievements and international image at the first China International Import Expo (CIIE). More than 3,600 companies from different countries are holding discussions and seeking common development with over 400,000 purchasers from China and overseas.
As close neighbors of China, 10 members of ASEAN including Thailand, Malaysia and Indonesia are all attending CIIE. Among them, Indonesia and Vietnam are Guests of Honor. What opportunities will this first CIIE bring to ASEAN members in terms of exports to China?
BENEFITS OF PROXIMITY
“ASEAN countries regard the statelevel expo focused on importing as a golden opportunity,” remarked Xu Ningning, executive president of the China-ASEAN Business Council, to China Report ASEAN. “Thanks to geographical proximity to China, they have an advantage in terms of sharing the benefits of China’s openingup. Safeguarding multilateralism and international trade rules aligns with the common interests of China and ASEAN.” As China’s neighbors, ASEAN countries are usually the first to learn and be affected by China’s development and changes. The CIIE will further upgrade trade and economic cooperation between China and ASEAN, Xu added.
With large market potential and preferential policies, especially the zero-tariff policy in the China-ASEAN Free Trade Area, products from ASEAN countries can enter Chinese market quickly and smoothly, according to Xu.
China is a manufacturing powerhouse with products selling around the world. It is also a large marketplace for consumer goods and services offered by global businesses. Consumer demand in China is on the rise. For example, Chinese people are drinking more and more coffee. Producing instant coffee requires two different coffee species, robusta and arabica, which are respectively grown in ASEAN countries and China. Chinese instant coffee makers have been importing large volumes of robusta coffee beans from Vietnam and other ASEAN countries.
“Among world’s largest producers of robusta coffee beans, ASEAN countries like Vietnam, Myanmar, Laos and the Philippines are looking forward to China’s expansion of imports,” added Xu. The CIIE will create more opportunities for ASEAN countries to expand exports to China. Businesses are expected to showcase their competitiveness while seeking opportunities.
ENABLING ASEAN TO SHARE CHINA’S MARKET DIVIDENDS
“China and ASEAN countries all benefit from free trade,” continued Xu. “Safeguarding multilateralism and international trade rules aligns with the common interests of both China and ASEAN, and it is also conducive to expanding regional economic cooperation and upgrading industrial value chains on both sides. Against the backdrop of a profoundly changing world order and ongoing economic globalization, China and ASEAN become increasingly intertwined.”
ASEAN has remained China’s third largest trade partner for several consecutive years. Trade volume in 2017 hit a record high of $514.8 billion, up 13.8 percent from the previous year. Instead of seeking a trade surplus, China has been working to narrow trade gaps with ASEAN countries like Indonesia and Vietnam. With over $1 trillion imports from ASEAN countries, China has emerged as one of the most crucial export destinations for ASEAN in recent years. China is enthusiastic about sharing its domestic market with ASEAN and enabling people from those countries to benefit more from cooperation with China.
How to further improve ASEAN exports to China? Xu Ningning offered a solution: “The governments and business councils can optimize their roles by launching training programs on foreign exporting for ASEAN businesses, especially small and medium-sized enterprises, so that they can enhance their exporting capability by developing products specifically for the Chinese market.” CIIE and specialized trade fairs will offer ideal opportunities for ASEAN enterprises to enter Chinese market.