uae- china news2010

8/2/2019 Uae- China News2010

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A recently released analysis by Dubai Chamber of Commerce and Industry indicates that the UAEand China have developed a significant trading relationship over the years with both economiesgoing through a fast economic development stage. Total trade reached $119.4bn between 1999 and2009 and the UAE has expressed keen interest in strengthening the relationship by diversifying ties

with the booming Chinese economy by investing in areas such as finance, real estate andconstruction.

The analysis pointed out that trade between both the sides has mostly centered on base metals and relatedmaterials coming out of the UAE and cheap Chinese goods coming into the UAE. Meanwhile, tradebetween both countries reaches into a large array of other goods and services.

Tthe UAE has run a trade deficit with China in recent years. Total export growth has been growing at anaverage of 37.9% between 1999 and 2009. On the other hand, total imports have been growing at asimilar rate of 31.1% during the same period.

An examination of trade by HS section portrays that UAE's exports to China have been mainly focused on

mineral products, chemicals and allied industries, plastics and rubber products as well as base metals. Interms of imports, the UAE has received goods and services from China ranging from textiles, machineryand mechanical appliances, base metals and plastics and rubber products.

The average annual growth by HS section over the period 1999 and 2009 suggests that, plastics andrubber products came in first for exports of the UAE to China at a rate of 77.0%, followed by vegetableproducts at a rate of 74.4%. In terms of imports, the strongest average annual growth rate by HS sectionwas recorded for works of art and antiques at a rate of 44.1% and secondly by mineral products (23.2%rate of growth).

The analysis further revealed that given the overwhelming level of trade between the UAE and China inrecent years, it is clear that across the board, UAE businesses have benefitted from the UAE's strategic

location, its cost and market advantages as well as its status as an international business hub in order tofacilitate trade growth. The favourable business environment that the UAE has created over the years hasmeant both local and foreign businesses have been able to grow, expand and in-turn export their goodsand services to the wider global economy.

The capacity of the UAE to efficiently move goods and connect manufacturers and consumers withinternational markets globally has improved markedly over the years.

The analysis also indicated that trade logistics performance is directly linked with positive externalitieswith other economic sectors as well as with trade expansion, the diversification of exports and overalleconomic growth will improve further in the years ahead, adding that it is clear therefore that with theexpected easing in liquidity conditions along with the boost in market sentiment, exports and trade in

general will continue to rise further amongst the business community in 2010.


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China to overtake US as largest trading nation

Shipments within Asia-Pacific and expanded ties with Latin America, Mena to spur growth

Bloomberg Published: 00:00 February 22, 2012

4Hong Kong: China will overtake the US as the world's largest trading nation by 2016, as intra-Asian commerce and rising demand from emerging markets boost shipments, according toHSBC Holdings Plc.

Trade in China and the Asia-Pacific will grow at an annualised pace almost twice as fast as theworld average over the next five years, driven by shipments within the region and expanded tieswith Latin America, the Middle East and North Africa (Mena), HSBC said in a global tradereport issued yesterday.

Demand from traditional consumer markets in the West is expected to slow as the evolvingEuropean debt crisis threatens the global outlook. China, the world's second-biggest economy,will stimulate growth with fiscal stimulus and an acceleration in infrastructure projects, raisingits imports of commodities from Latin America and the Middle East, HSBC said.

"The world's largest businesses are continuing to broaden their supply chains across Asia-Pacific" that will boost trade within the region, Simon Constantinides, HSBC's regional head ofglobal trade, Asia-Pacific, said. "As China expands its global reach, especially into SouthAmerica and Africa, its substantial energy demand and higher manufacturing output will drivestrong imports and exports within these sectors."

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Largest exporter

HSBC estimates the value of China's trade will rise at an annualised rate of 6.6 per cent over thenext five years, compared with 6.5 per cent gains for Asia and 3.8 per cent for the world,according to the report. China's share of global imports and exports will increase to 12.3 per centin 2026 from 9.8 per cent last year, the bank estimates. The nation overtook Germany as theworld's largest exporter in 2009


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China strives to avert trade war

Beijing will import more luxury goods this year, but will not curb its own exports

Reuters Published: 00:00 March 2, 2012

0Beijing: China will import more big ticket items and luxury goods this year to avoid a costlytrade war, but will not curb its own exports, predicted a former Chinese trade official in aninterview with Reuters.

Tensions between China and its trade partners over issues from solar panel subsidies to airlineemissions fees have intensified recently as the global economy slows, and US politicians sharpentheir rhetoric ahead of a presidential election later this year.

"We must prepare for a big trade war this year," said Wei Jianguo, a former vice commerceminister who is now a government adviser.

"But since Chinese consumers demand Western cosmetics and handbags, why can't we greatlyboost imports of such products?"

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Earlier this week, US President Barack Obama signed an executive order creating a newgovernment team to enforce trade rules, a step widely seen as aimed at China, and seniorlawmakers want to push a bill that would allow the US to impose duties on subsidised Chinesegoods.

Transition period

China has largely remained quiet about the Obama administration's move to create the 50-60person trade unit, suggesting its leaders hope to avoid a loud dispute with the United States in ayear when China goes through its own sensitive leadership transition.

As for Europe, Wei said China should cut import duties to encourage more purchases by China'saffluent consumers, who enthusiastically buy Louis Vuitton handbags and Italian suits.


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China, the world's largest exporter selling $1.9 trillion worth of products to overseas markets in2011, often uses big orders for American products, from Boeing aircraft to soybeans, as a way ofdeflecting US anger over its huge trade deficit.

It is also the biggest target for anti-dumping charges. Those cases increasingly come from

emerging markets like India and Brazil, China's key export markets for the future.

"Developed countries will target us. Our friends, emerging markets, will also target us," Weisaid, speaking at the offices of the China Centre for International Economic Exchanges, a quasi-governmental think-tank.

China's response to its trading partners' complaints is limited by its own domestic worries, Weisaid. The Chinese government must continue to protect its exporters with all possible ways including keeping the yuan exchange rate relatively stable, he said.

Support

"The government must make a warm cotton quilt to help exporters weathering the harsh winter."

Wei's comments do not represent Beijing's official stance. But Wei, also a member of theChinese People's Political Consultative Conference, the country's top advisory body, isinfluential in policy-making.

Chinese leaders are especially nervous about the fate of the export sector, one of the biggestdomestic employers and key to preserving social stability.

President Hu Jintao said in February that China must implement an "even more proactive"

employment policy, showing Beijing's deep-seated worry.

China's Ministry of Commerce is working out detailed measures to help the country's exportersafter exports fell 0.5 per cent from a year ago in January.

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