China builds relationship with neighbors

While trade warriors in the U.S. are having a hard time selling their mission to policy-makers, China is steadily conquering new markets

By ·

As noted in our news section, Intra-Asia shipping is booming. And while many trade warriors in the U.S. are having a hard time selling their mission to policy-makers, China is steadily conquering new markets.

Free trade is the highlight of the seventh China-ASEAN Expo (CAEXPO), which opened yesterday in Nanning, capital of south China’s Guangxi Zhuang Autonomous Region.

The first expo held since the China-ASEAN Free Trade Area (CAFTA) was established in January, the EXPO attracted record numbers of businesses looking to take advantage of the new opportunities on offer.

China has removed tariffs on 91.5 percent of products imported from the 10 ASEAN countries, and the average tariff rate is down to 0.1 percent. The six original ASEAN countries, Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand, have removed tariffs on 90 percent of Chinese commodities, and cut the average tariff level down to 0.6 percent. The four newer ASEAN countries – Viet Nam, Lao PDR, Cambodia and Myanmar – will achieve this goal in 2015.

From January to August this year China-ASEAN bilateral trade totaled US$185.4 billion, comprising imports worth $97.3 billion and exports worth $88.1 billion, up 54 percent and 40 percent over the same period last year respectively.

“ASEAN is China’s third largest importer and our fourth largest export market,” said Jia Guoyong, deputy director general of the Trade Development Bureau of China’s Ministry of Commerce. “CAFTA, is a new zone for bilateral trade, and will boost cooperation among China and ASEAN members.”

In the first half of 2010, ASEAN direct investment in China reached around $3.1 billion, while China’s non-financial direct investment in ASEAN economies was about US$1.2 billion. As of the end of June this year, cumulative investment volume totaled $69.4 billion.

With the expo as an important stimulus, enterprises from China and ASEAN will benefit from a potential market of 1.9 billion people, covering 11 countries, Jia said.
It is estimated that China-ASEAN bilateral trade will hit the $250 billion mark this year.

The six-day expo will run until October 24, and will center on the development of CAFTA and promotion of favorable trade and investment policies in member nations. With the theme of “free trade and new opportunities,” the expo includes a range of high-level forums on finance, agriculture, brand management, and trade association cooperation.

Commodities with low and zero tariffs, including machinery, electronics and construction materials, are expected to be a highlight of the expo.

For more Logistics Management coverage of “China” click here

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

China · Exports · Imports · Shipping · Trade · All Topics
Latest Whitepaper
Case Study: LEAN Yields Big Results
Every day, companies across a wide range of industries use LEAN in their supply chains, warehouses and distribution centers, finance departments, and customer service centers, among other areas. LEAN practices improve safety, quality, and productivity by extracting cost and waste from all facets of an operation – from the procurement of raw materials to the shipment of finished goods.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...