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
Warehouse Management Systems (WMS) / Inventory Management Technology: 6 Trends for the Modern Age
Here’s how the next generation of warehouse and inventory management systems are evolving to help logistics operations operate more efficiently and improve their bottom lines in our brave, new digital age.
Download Today!
From the March 2018 Logistics Management Magazine Issue
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage to meet evolving requirements and shifting operational constraints? We’ve rounded up insights from leading analysts to share tools that are available now as well as what’s on the horizon.
Reverse Logistics in the “Age of Entitlement”
Logistics Management’s Viewpoint on E-commerce: Leveraging available tools
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
Evolution of E-commerce: The possibilities of tomorrow
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage...
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...

2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...