The great import show highlights the promise and challenges of China
The great import show highlights the promise and challenges of China
Visitors to a large trade fair destined to change brands China As a cozy import market I could drink Moroccan wine, eat Italian yachts and see a JapanThat industrial robot plays ping-pong.
The marketing extravagance of the communist government involving 3,600 companies from 152 countries shows the promise and challenges of the growing, state-dominated and highly competitive markets of China.
At a booth for the German robot manufacturer Jungheinrich AG, viewers observed a bright yellow automated forklift moving bulky boxes. One manager, Christian Wurzinger, said China accounts for a third of its global sales, but the Hamburg company wants to expand beyond factories and logistics to health and other industries.
The exhibition provides "very good access to Chinese companies, especially outside the big cities," said Wurzinger. "We are lucky to be here."
However, he said that Jungheinrich is already facing the Chinese competition: "There are many local Chinese manufacturers with pretty good technology, to be honest."
The China International Import Expo is part of efforts to develop global trade networks focused on China, while resisting the pressure to reverse the plans of the industry that Washington, Europe, Japan and other governments say violate their market opening obligations.
Eager to dispel complaints that abuse the global trading system, China's leaders are promoting their growing demand for foreigners food, luxury brands, entertainment and other goods.
China is already the number 1 market for most of its Asian neighbors. But a large part of those imports is iron ore, computer chips and other materials that become smart phones, toys and other goods for export.
This is changing as communist leaders promote consumer spending as part of efforts to develop self-sufficient economic growth and reduce dependence on trade and investment. That holds the promise of a market of 1.4 billion consumers, even if revenues are a fraction of those in developed countries.
On the day of the opening of the expo, President Xi Jinping on Monday promised to boost imports, reduce costs for importers, protect patents and improve the purchasing power of consumers. But he did not address the complaints of the United States and Europe about the technological policy that motivated the President Donald Trump to impose tariffs of up to 25 percent on Chinese products of $ 250 billion.
Importers in China have to deal with a lot of restrictions and, in cars and other industries, the pressure to help develop potential Chinese competitors as the price of market access.
Tarvand Saffron, an Iranian exporter of saffron, was invited to the exhibition by a Chinese state company. But the export manager, Amir Reza Jalalian, said the food regulations prohibit sales of their product in China.
"Maybe in the future we can import saffron," Jalalian said, as visitors crowded around the company's stand to smell the crimson spice.
Business groups complain that while Beijing increases imports to serve its factories and consumers, foreign companies are being excluded from technology and other promising industries.
The exhibitors of the exhibition ranged from the toys of General Motors and Lego to the Brazilian shoemakers, a Korean brand of dumpling and the National Enterprise Corp. of Uganda, an exporter of coffee and honey.
The visitors gathered around a platform for Omron Corp., from Japan, to see how an industrial robot hits a ping-pong ball with a human opponent.
The global brands of automobiles, aerospace and technology are already well known in China, suggesting that many were in the exhibition not to sell but to foster relations with the Communist Party by showing support for Xi's commercial initiative.
"For most of China's imports, these exposures do not make much difference," said Gareth Leather of Capital Economics. "For companies from smaller and developing countries, probably at the margins they do make a small difference."
At a Polish poultry promotion stand, visitors lined up for chicken bowls in cream sauce made by chefs led by the famous chef Artur Moroz.
Nearby, visitors drank red and white wines from La Ferme Rouge, a winery in Morocco in North Africa. It produces exclusive lots under the labels of luxury hotels in Morocco and wants to market that service to high-end Chinese hotels and restaurants.
"It's a great opportunity for us to enter this part of the market," said Rita Sourelah, a manager.
The exhibition also highlighted the blurring of lines as Chinese companies acquire brands and technology from the United States and Europe to sell at home.
Weichai Group, a Chinese shipbuilder, exhibited a luxurious cabin cruise manufactured by Italy's Ferretti, in which Weichai bought a 75 percent stake in 2012.
Other hybrid importers include Volvo Cars of Sweden, a unit of Chinese automaker Geely Holding; General Electric Appliances, acquired by the Haier Group of China in 2016, and the California-based solar energy provider MiaSole, part of the Beijing-based Hanergy Group.
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