Fair sets open slate for trade

The 2015 China International Fair for Investment and Trade is aimed at developing more potential sources of investment through programs offering both domestic and foreign companies new market growth opportunities.

The fair, held in Xiamen, Fujian province, from Tuesday to Friday, is expected to build a flexible platform for Chinese companies to tap overseas markets, increase China's outbound direct investments to other global destinations and attract quality foreign direct investment and technologies into the country.

Much of these opportunities come from China's recent moves to develop its markets, such as supporting e-commerce businesses, the establishment of the Asian Infrastructure Investment Bank, new free trade zones and the Belt and Road Initiative.

E-commerce businesses grew rapidly around the world last year, with transaction volume within the Chinese market reaching 1.3 trillion yuan ($205 billion).

The Ministry of Commerce predicted that the total transaction volume generated from China's e-commerce businesses will reach 1.8 trillion yuan by the end of the year.

Ni Chao, vice-mayor of Xiamen, said she hopes more leading Chinese and foreign e-commerce companies seal deals during the four-day fair.

The establishment of the Xiamen Area of China (Fujian) Pilot Free Trade Zone has enabled cross-border e-commerce to thrive in the city.

Many industrial parks have been set up in Xiamen to form a cluster of e-commerce companies. Bonded warehouses have been built to facilitate the growth of e-commerce.

"China has also been keen to take decisive measures to diversify investment, trade, regional connectivity and economic integration with countries along the Belt and Road trading routes and enable easier domestic market access for foreign companies," Ni said.

The Silk Road Economic Belt and 21st Century Maritime Silk Road were proposed by President Xi Jinping in 2013 with the purpose of rejuvenating the two ancient trade routes.

The Belt and Road Initiative has reached a critical stage of implementation with over 50 countries already expressing interest in taking part this year. China invested $7.05 billion in 48 countries such as Singapore, Indonesia, Kazakhstan and Russia, all of which are situated along the proposed routes, between January and June of this year, up 22.2 percent on a year-on-year basis.

Zhang Yuzhong, deputy director of the investment promotion agency under the Ministry of Commerce, said an increasing outflow of China's overseas direct investment could help stimulate the global economy and sustain its growth momentum, even as uncertainties remain over the strength of the global recovery.

To provide financial support, China committed $50 billion in October to the Asian Infrastructure Investment Bank, with 57 countries since joining or applying to join as founding members of the bank by the end of April. The bank's long-term goal is to raise $100 billion for future projects.

The AIIB will focus on lending money for Asian infrastructure construction and to strengthen the global economic recovery. It will integrate the fiscal ability of its founder members and boost financial leverage to speed investment.

Zhang said the establishment of the AIIB and new free trade zones in China's coastal provinces will not only increase economic flexibility with countries along the Belt and Road, but also provide larger platforms to improve services and upgrade industries for pillar manufacturers in both China and abroad.

Foreign players have been consolidating their presence further by diversifying their localization strategies and establishing new research and development centers, as well as sewing up more alliances and acquisitions in China, especially in Shanghai and the Yangtze River Delta; Beijing and the Bohai Rim; as well as Guangzhou, Shenzhen and the Pearl River Delta.

Alexandra Voss, a board member of the German Chamber of Commerce in China, said as China undergoes industrial upgrading, German companies are looking to increase their investments in China's modern manufacturing sector as the country transitions to a more moderate phase of growth.

zhongnan@chinadaily.com.cn

(China Daily 09/07/2015 page14)