Quintet keen to play role in keeping trade free
China will further open up its market for imports from other BRICS countries and pledge to spearhead an anti-protectionism campaign with Brazil, Russia, India and South Africa, a senior commerce official said.
“Investment and trade are the vital economic driver for BRICS countries as they have profound potential,” said Wang Shouwen, vice-minister of commerce, at a news conference on July 25.
“BRICS accounted for 23 per cent of global GDP in 2016, up from 12 per cent a decade ago, but only accounted for 16 per cent of world trade, 16 per cent of total foreign investment and 12 per cent of outbound investment.”
Wang said China will further open its market to other BRICS countries and increase imports, as they are highly complementary in trade.
“For example, agricultural products from Brazil, medical products from India, energy products from Russia and wine from South Africa are welcomed in China,” Wang said. “In the past six months China's imports from BRICS countries increased 33 per cent year-on-year.”
The ministry hosted a two-day meeting of BRICS trade ministers in Shanghai on Aug 1-2 before the BRICS Leaders’ Meeting to be held in Xiamen, Fujian province, in early September.
Wang said while protectionists have a sceptical attitude toward multilateral trade, China hopes the BRICS nations could tackle the skeptics as a united team and build a sufficient trade mechanism. To strengthen trade links, Wang said China will host an international imports exhibition from next year.
“The exhibition will help with trade and stimulate investment,” he said.
“We are expecting BRICS countries to play an active role in the exhibition, thus ensuring that more goods can enter the Chinese market.”
Zhang Shaogang, director-general of the Department of International Trade and Economic Affairs at the Ministry of Commerce, said Chinese e-commerce platforms have been gaining popularity among companies in other BRICS countries.
“We hope to optimise the e-commerce mechanism, encourage industry interaction and set a good example in e-commerce co-operation between developing countries.”
Regarding investment, Wang said BRICS countries have been making progress to facilitate multilateral investment.
“The BRICS proposed action plans to facilitate investment in 2014, and the G20 summit agreed on the guiding principles for global investment,” Wang said. “And this year’s meeting will make further investment more convenient.”
The Chinese market will benefit its BRICS partners in many sectors, such as consumer goods from South Africa and Russia.
Neil Wang, China unit president at the global consultancy Frost& Sullivan, said China is opening up to different sectors, for example the diamond business.
“China was the major diamond import destination and consumer for South Africa and Russia in 2016, and demand for diamonds has been growing since 2012.”