CIIE set to re­store global trade strength

Expo will pro­vide op­por­tu­nity to fur­ther open up pro­cure­ment mar­ket in China

China Daily (Hong Kong) - - BUSINESSFO­CUS - By ZHONG NAN zhong­nan@chi­nadaily.com.cn

With many coun­tries seek­ing ways to off­set the eco­nomic slow­down caused by the COVID-19 pan­demic and foster fresh trad­ing mo­men­tum, the China In­ter­na­tional Im­port Expo will be a pre­ferred plat­form to re­store the world’s trad­ing strength and fur­ther open up China’s pro­cure­ment mar­ket, the leader of a South Korean busi­ness or­ga­ni­za­tion said.

The CIIE has so far made great con­tri­bu­tion to the pro­mo­tion of China-South Korea trade through ex­hi­bi­tions and pro­mo­tions of prod­ucts as well as eco­nomic and trade fo­rums, busi­ness-match­ing con­fer­ences and in­dus­try-spe­cific sem­i­nars, said Kang Won-sig, chairman of the Seoul-based G-PASS Com­pany Ex­port As­so­ci­a­tion of South Korea.

The or­ga­ni­za­tion helps South Korean firms that are se­lected by the govern­ment pro­cure­ment agency to ef­fec­tively and strate­gi­cally gain the chance for com­pet­i­tive ex­ports to for­eign coun­tries.

Kang said Chi­nese buy­ers showed great in­ter­est in the range of prod­ucts of­fered by G-PASS com­pa­nies in the past two ex­pos.

Kang noted that the CIIE of­fered op­por­tu­ni­ties to com­pare its mem­ber com­pa­nies’ prod­ucts with the goods in the same cat­e­gory man­u­fac­tured by their global ri­vals for anal­y­sis of mar­ket trends.

“Many South Korean com­pa­nies have not only built part­ner­ships with Chi­nese busi­nesses in the past two ex­pos, but also en­tered into joint ven­tures via the CIIE to make for­ays into the lo­cal mar­ket. I believe the CIIE has proven to be an out­stand­ing plat­form for the fu­ture of bi­lat­eral trade,” he said, adding a num­ber of its mem­ber com­pa­nies have sealed ex­port deals in the first two CIIEs held in Shang­hai.

More than 90 per­cent of the planned ex­hi­bi­tion area had been re­served by ex­hibitors from across the world for the third CIIE this year in Shang­hai from Nov 5 to 10, as of early June, ac­cord­ing to its or­ga­nizer.

Due to the COVID-19 out­break, a pub­lic health and epi­demic preven­tion ex­hi­bi­tion area will be in­tro­duced in this year’s event, data from the Min­istry of Com­merce showed.

Even though the pan­demic has caused huge eco­nomic losses across the world, South Korea has been ex­port­ing prod­ucts such as masks and test­ing kits that the world needs over the past three months. The coun­try is heav­ily re­liant on trade in the global mar­ket.

Kang ex­pects changes will lead to the growth of the coun­try’s ex­port mar­ket and the global im­port mar­ket and ac­ti­vate a chan­nel for the ex­change of tech­nolo­gies nec­es­sary to over­come this cri­sis be­tween coun­tries in line with the found­ing pur­pose of the In­ter­na­tional Fed­er­a­tion of Pub­lic Pro­cure­ment So­ci­eties.

He also hopes that this year’s CIIE will pro­vide a vi­tal op­por­tu­nity to fur­ther open up the pro­cure­ment mar­ket in China to en­able a prac­ti­cal ex­change of sus­tain­able tech­nolo­gies.

Trade volume be­tween China and South Korea amounted to 755.79 bil­lion yuan ($107 bil­lion) dur­ing the first five months of this year, fall­ing 4.6 per­cent on a year-on-year ba­sis as busi­ness was af­fected by the con­ta­gion and rel­a­tively quiet Spring Fes­ti­val hol­i­day (Jan 24 - Feb 2) pe­riod, data from the Gen­eral Ad­min­is­tra­tion of Cus­toms showed.

Kang said the Chi­nese mar­ket will keep grow­ing, point­ing to an eas­ing in trade re­la­tions be­tween China and the United States, the world’s two big­gest economies.

South Korea-China eco­nomic ties are ex­pected to be fur­ther en­riched in the next stage. G-PASS will con­tinue to deepen its part­ner­ship with the Bei­jing-based China As­so­ci­a­tion for Pro­mot­ing UN Pro­cure­ment to boost trade that prac­ti­cally ben­e­fits both coun­tries by open­ing up the im­port mar­kets, he said.

Gao Feng, spokesman of the Min­istry of Com­merce, said China will con­tinue to in­no­vate its work­ing meth­ods to pre­pare for the third CIIE and help global com­pa­nies ex­pand their mar­ket pres­ence.

The coun­try will also fur­ther pro­mote the expo’s role as a ma­jor plat­form for in­ter­na­tional trade, in­vest­ment pro­mo­tion, cul­tural ex­change and open co­op­er­a­tion.

Com­pa­nies have been at­tracted by China’s big mar­ket space formed by new in­fras­truc­ture, surg­ing de­mand for high-tech in­dus­trial parts and ser­vices, tech­nol­ogy up­grad­ing of new en­ergy ve­hi­cles and tra­di­tional man­u­fac­tur­ing.

South Korean com­pa­nies such as Sam­sung Elec­tron­ics Co Ltd and SK In­no­va­tion an­nounced that they will con­tinue to in­vest in Xi’an of Shaanxi prov­ince and Changzhou in Jiangsu prov­ince to seize more mar­ket shares in China this year.

Buoyed by China’s grow­ing de­mand for med­i­cal gloves and re­lated ma­te­ri­als like nitrile bu­ta­di­ene la­tex, South Korea’s LG Chem Ltd in­vested 330 mil­lion yuan on a new man­u­fac­tur­ing fa­cil­ity in Ningbo, Zhe­jiang prov­ince, in mid-April to pro­duce nitrile bu­ta­di­ene la­tex.

The project is ex­pected to be op­er­a­tional by April 2021, with an annual out­put of 100,000 met­ric tons.

Many South Korean com­pa­nies have not only built part­ner­ships with Chi­nese busi­nesses in the past two ex­pos, but also en­tered into joint ven­tures via the CIIE to make for­ays into the lo­cal mar­ket.” Kang Won-sig, chairman of the Seoul-based G-PASS Com­pany Ex­port As­so­ci­a­tion of South Korea

CHEN JIANLI / XIN­HUA

Vis­i­tors gather at the stand of South Korean au­tomaker Kia Mo­tors to see a new con­cept car model dur­ing the sec­ond CIIE in Shang­hai on Nov 8, 2019.

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