What Does CIIE Mean for China—ASEAN Trade？

By Wang Fengjuan

“The Chinese economy is not a pond， but an ocean，” declared Chinese President Xi Jinping at the opening ceremony of the first-ever China International Import Expo （CIIE） in Shanghai on November 5. “Having experienced numerous winds and storms， the ocean will still be there！”

The CIIE attracted an assemblage of dazzling commodities and crowds of businesspeople from around the world. The already boisterous atmosphere was enhanced by frequent bursts of celebration as various deals were closed. As neighbors of China， 10 members of ASEAN including Thailand， Malaysia and Indonesia all attended the CIIE， among which Indonesia and Vietnam were Guests of Honor. What opportunities will the extraordinary CIIE bring to ASEAN members in terms of exporting to China？

Stronger Signal for Cooperation

At the opening ceremony， Xi Jinping reiterated Chinas steadfast commitment to defending economic globalization. “China will not stop its efforts to pursue higher-quality opening-up，” asserted Xi. “China will not stop its efforts to pursue an open world economy. And China will not stop its efforts to pursue a community with a shared future for mankind.”

As the world economy undergoes profound shifts and changes， only opening-up will bring countries mutual benefits， common prosperity and sustained development. Opening-up is a wise choice for every country.

In his speech， Xi called on countries to act with greater courage and actively champion openness and cooperation to secure shared development. To this end， he proposed all countries open wider and expand space for mutually beneficial cooperation， pursue innovative growth and accelerate the transformation of growth drivers， and pursue inclusive development for the benefit of all.

It is self-evident that openness， innovation and inclusiveness are key themes of Xis speech. As he stressed， “Progress of human society requires the continued efforts of all countries to advance opening-up， cooperation and win-win development， instead of seclusion， confrontation and monopoly.”

Xi announced five measures to expand opening-up： stimulating the potential for increased imports， continuing to broaden market access， fostering a world-class business environment， exploring new horizons of opening-up， and promoting international cooperation at multilateral and bilateral levels.

The CIIE evidences Chinas commitment to opening-up and free trade， pointed out Vietnamese Prime Minister Nguyen Xuan Phuc， adding that Vietnam is ready to take the opportunity to expand exports to China.

“China is a priority market for the Philippines，” revealed Ramon M. Lopez， secretary of the Department of Trade and Industry of the Philippines. “We are looking forward to exporting products and services to China and attracting Chinese investment to the Philippines.” According to Lopez， Philippine exhibitors closed many export deals at the expo.

Benefits of Proximity

“ASEAN countries regard the national-level expo focusing on imports as a golden opportunity，” opined Xu Ningning， executive president of China-ASEAN Business Council. “Considering their geographic proximity to China， they are better positioned to share the benefits brought by Chinas opening-up. Upholding multilateralism and international trade system aligns with the common interests of ASEAN.” As Chinas neighbors， ASEAN countries are usually the first to learn about and be affected by Chinas development and changes. The CIIE will further upgrade trade and economic cooperation between China and ASEAN.

China is a manufacturing powerhouse， and its products sell all over the world. It is also a marketplace for consumer goods and services offered by global businesses. Consumer demands in China are on the rise. For example， Chinese people are drinking more and more coffee. Producing instant coffee requires the two coffee types of Robusta and Arabica， which are grown in ASEAN countries and China respectively. Chinese instant coffee makers have been importing large quantity of Robusta coffee beans from Vietnam and other ASEAN countries.

With large market potential and favorable treatment， especially the tariff-free policy in the China-ASEAN Free Trade Area， products from ASEAN countries can enter Chinese market quickly and easily， according to Xu.

How can ASEAN businesses further increase their exports to China？ Xu Ningning offered a tip： “The government and business councils can work harder to provide training programs on exporting for ASEAN businesses， especially small and medium-sized enterprises， so that they can enhance their exporting capabilities by developing products specifically for the Chinese market.” CIIE and special trade fairs offer opportunities for ASEAN enterprises to test the Chinese market.

Boosting Confidence

With the theme of “New Era， Shared Future，” the major event facilitated a series of large-volume deals signed by business partners， new and old， from around the world. Statistics show that deals for intended one-year purchases of goods and services worth a total of US$57.83 billion were reached at the first CIIE. The worlds first-ever national-level import expo effectively boosted the confidence of ASEAN countries to export to China.

“International trade is an important tool for a country to develop its economy， and the CIIE came at the right time，” remarked Thailands Deputy Prime Minister Somkid Jatusripitak. “The CIIE will enhance confidence in free trade， especially as the global free trade system is threatened.” Jatusripitak added that it would also help balance trade between China and other countries， promote common progress and win-win cooperation among countries and bring common interests to every party.

Deputy Minister of Commerce of Myanmar U Aung Htoo declared that the CIIE demonstrated Chinas potent commitment to championing the growth of developing nations. “This is greatly significant for Myanmar，” he said. “We found more export opportunities at this expo. One way for China to assist other developing countries is to expand opening-up so that more developing countries can have access to the Chinese market.”

The Thailand-based Charoen Pokphand Group （CP Group） showcased more than 400 commodities from 14 countries and regions including Thailand， and wrapped up a deal with CLHOO.com， a Chinese online marketplace for snacks， valued at over US$100 million. The conglomerate also closed an agreement worth 500 million yuan （US$72 million） with Chengdu Trade Logistics Developing Investment Group.

“As one of the first foreign businesses to invest in China after the introduction of reform and opening-up， CP Group has remained confident in the Chinese market and devoted to improving the lives of Chinese consumers，” said Xue Zengyi， vice chairman of Charoen Pokphand Food in China. CP Group has already registered as an exhibitor for the next CIIE with hopes of expanding China-Thailand friendship as well as economic and trade cooperation via the platform， according to Xue.

“The foremost purpose of the CIIE is to fulfill peoples aspirations for a better life，” declared Gan Chunhui， vice president of the Shanghai Academy of Social Sciences. “As Chinese President Xi Jinping stressed at the opening ceremony， leading a happy life is the common aspiration of all people around the world. As Chinese people become more and more affluent， their aspirations for improved living standards become stronger， manifested by robust demands for commodities from luxury goods to food and daily necessities. However， domestic supply of products or services still runs short of the demand， so expanding imports is an effective solution to filling the gap.”

Gan believes Xis speech showed confidence in Chinas economic prospects. In terms of trade policy， China is shifting from stressing exporting to balancing exports and imports. “Selling and purchasing around the world through the CIIE is a win-win solution because all participating parties will see tangible benefits，” he added.