Yunnan a pivot for cross border trade

The curtain recently went down on the 17th Kunming Import & Export Fair (KIEF), held as part Yunnan province's effort to follow Guangxi Zhuang autonomous region as a hub for trade with bordering nations.

Li Yihong, director of the International Affairs Department from the Ministry of Commerce, said in a recent interview to local media that amid the current economic meltdown, Yunnan is providing economic stimulus with its fast-expanding border trade.

The number of exhibitor booths by traders from both home and abroad surpassed 2,200 at the latest KIEF, an increase of 10 percent over last year's event.

Participants from Southeast Asian countries organized more than 300 commodity fairs during the KIEF that included clothing, mining, pharmaceuticals, craftwork, ornaments, building materials, software and tourism services.

"More measures are needed to expand the crucial business cooperation between Yunnan and countries in South and Southeast Asia to a higher level, including from both governments and companies," Li said.

Provincial customs statistics show that due to the ongoing economic crisis, by April Yunnan's trade with Myanmar fell 7.1 percent to $275 million, was down 19.5 percent with Vietnam to $42.7 million and dropped 14.7 percent with Laos to $18.3 million.

Total exports in the first four months were valued at $190 million, a year-on-year increase of 5 percent, while imports decreased 23 percent to $145 million.

To encourage more flexible border trade, the Yunnan provincial government recently launched an official trading website in English.

One of the first results of the website was about 100 truckloads of fruit and oil from Thailand, said Li Jiming, vice-director of the Yunnan provincial government's commerce department.

Due to its location, Yunnan has always been a gateway to Southeast Asia and served as an entrepot along the southern Silk Road in the fourth century BC connecting with Myanmar, Laos and Vietnam.

Its abundant and diverse natural resources have long since attracted traders from neighboring countries.

"Yunnan is one of the significant areas in south China that can connect eastern, southeastern and southern Asia and link the Indian Ocean with the Pacific Ocean," said Sun Xiaohong, secretary-general of KIEF.

"If we connect China with South Asia via Yunnan, an emerging market will be formed and will definitely influence the global economy," she said, adding that it is the only province adjacent to so many Southeast Asian countries and has the longest land boundary.

Since 1979, Yunnan has played an important role in opening southwest China with eight counties approved by the State Council to be State-level ports, including its provincial capital Kunming, Ruili county, Wanding city and Hekou city, which enjoy preferential policies similar to coastal cities.

Their border economic cooperation zones are sanctioned by the State Council to improve border trade with 28 neighboring and nearby countries in products ranging from sugar, beer, cigarettes, garments, cement, oil, paraffin wax, rubber, tropical fruit and Chinese medicinal herbs.

As a part of the greater Mekong River region, Yunnan province is central to business between China and the other five countries along the fabled river - Cambodia, Laos, Myanmar, Thailand and Vietnam.

With increasing numbers of economic promotion events in Yunnan in recent years, it is expected to play an even greater role in opening trade routes and building contacts, Li Yihong told local media.

(China Daily 06/22/2009 page10)