The 13th east China export commodities
trade fair recently held in Shanghai attracted 15,700
business people from 175 countries and regions, more than 90
percent of whom were from small to medium-sized companies.
During the week-long fair, exports of Chinese
products worth 2.04 billion US dollars were contracted, with
83 percent of deals signed by small to medium-sized
companies, a rise of more than 10 percent compared with the
last event.
This proves the estimation made
two years ago by the chairman of the Executive Committee of
the US Chamber of Commerce.
Steve Van Andel
forecast at that time that more and more overseas small to
medium-sized enterprises would pursue business opportunities
in China after the country's accession to the World Trade
Organization (WTO) in 2001.
Gruppo Emme,
general manager of the Italian garment company Gianni which
has 300 employees, came to China for the first time to
attend this year's fair.
He took the subway
every day to the fair to seek cooperation with quality
garment makers, citing that his company's exports, mainly
destined for the United States, face greater pressure due to
the continuing rise of the euro against the dollar.
"On the contrary, garments produced in
China are of low cost and good quality," he added.
To some overseas companies, commercial
opportunities in China not only mean money but also the
means to rejuvenate their flagging fortunes.
The Tokyo Candle Inc., for example,
established in 1918, revived its successful business by
relocating all its production lines to China and only
retaining its sale and service sectors in Japan.
"Low-cost labor and big markets in China
have saved our company. Otherwise, one more day's operation
in Japan means more losses to us," said Shi Yaoguo, a
Chinese manager of Tokyo Candle.
The Ever
Grass International Co. Ltd., a Taiwanese company producing
traditional style artistic fans, took the same road to
revival, as its production costs in Shaoxing, east China,
are only 60 percent of those in Taiwan.
At the
Shanghai trade fair, overseas business people were
especially impressed by the diversification, high quality,
and stable price of traditional Chinese-style garments,
handicrafts and other consumer products.
The
Global Sources Corp., a big-name provider of international
trade information, entered the China market in 1992 and has
received a marked increase in orders for Chinese products
during the past two years.
And the number of
orders from overseas small to medium-sized enterprises is
rising dramatically, according to the company.
Business in the China market accounted for 35
percent of the income of the information company in 2002, up
6 percent from a year earlier.
Professor Hua
Min, head of the world economic research institute at Fudan
University in Shanghai, indicated that high-quality but
low-cost products and a market of huge potential were the
key factors attracting overseas small to medium-sized
companies to China.
In addition, further
improvements in China's market economy system and its
harmonization with international trade and legal systems in
the wake of its WTO entry greatly helped reduce the cost and
risks for overseas business people to explore their chances
in the China market, he added.
According to a
state government official, foreign companies will have much
more opportunity to earn money in China in terms of its
encouragement of overseas investment across much wider areas
of the country.
More Overseas Small Businesses Eye China Market
2004-06-09 15:43