Commission helps boost economic ties

On September 10, Vice-Minister of Commerce Yu Guangzhou met Dutch Minister for Foreign Trade Frank Heemskerk in the Netherlands at the 13th session of the joint commission on Sino-Netherlands trade and commerce.

The officials agreed that both in the fields of trade and investment as well as in the field of science and technology there was scope to deepen the relationship. Nine consensuses were reached on the commission and four agreements signed.

The commission was opened after being suspended for some 13 years. The move also reflected the two governments' efforts to further strengthen bilateral economic ties.

In the field of science and technology, both ministers agreed that further cooperation in sustainable development, renewable energy and the combination of traditional Chinese medicine with personalized medicines would benefit both countries.

The economic relations between China and the Netherlands have been blossoming in recent years, boosted by frequent exchanges between high-profile officials and entrepreneurs.

In the second half of 2001, a large economic mission of Dutch entrepreneurs, headed by Vice-Prime Minister and Minister of Economic Affairs A. Jorritsma, made a successful visit to Beijing, Shanghai and Wuhan.

The Netherlands surpassed Britain in 2003 to become the second-largest trading partner of China within the European Union (EU).

According to the statistics of the Chinese Customs, the volume of foreign trade between China and the Netherlands reached $34.5 billion in 2006, up 19.8 percent over the previous year. According to Dutch statistics, China is the second largest trading partner of the Netherlands in the Far East region.

The Netherlands is seeking more business opportunities and cooperation in the world's fastest-growing market to rectify its trade imbalance.

As one of the largest ports, Rotterdam is a major city for the entreport trade of Chinese products. Experts agree that "the trade figures do not tell the whole picture of bilateral trade".

The economic and technological cooperation between China and the Netherlands is mainly concentrated in agriculture, chemicals, electronics, communications, water conservancy and food processing.

"Increasing the Netherlands' exports to China is the main purpose of this trade mission, in particular to introduce new companies to the Chinese market," said Sybilla Dekker, a Dutch official who once led a trade mission to China.

But "we don't think it (the Netherlands' huge trade deficit with China) is a problem," the acting minister of economic affairs stressed.

"We think it is a challenge. We can handle it by introducing more companies to China and bringing their products to the Chinese markets."

Senior officials from both sides agreed that the countries shared a complementary relationship in economy and trade.

While China's imports from the Netherlands only account for a tiny part of the European country's foreign trade, more and more made-in-Netherlands products are flowing into the maturing Chinese market. But like other foreign businesses, some Dutch companies find it difficult to adapt themselves to the Chinese market largely owing to cultural differences and language difficulties.

However, most Dutch companies are looking at the Chinese market with a long-term view. They have penetrated a number of sectors in China, such as water management, transportation, airport management, chemical industry, finance, banking, insurance, energy and environmental protection. Some of these investments accord with the priorities of the Chinese authorities.

In order to improve bilateral trade and investment, the European country has set up agencies in both the eastern and western regions of China. Along with diplomatic institutions, the agencies have helped lay a solid foundation for Dutch companies' forays into China.

(Shanghai Start 09/28/2007 page2)