The 21st Century Business Herald reported yesterday that China's buying mission is set to leave for Europe on February 24, and the scale of its budget may be far more than the previously reported 15 billion yuan (US$2.2 billion).
Chinese Premier Wen Jiabao had promised during his Euro tour that China would send a buying mission to Europe to promote imports from the EU. It is said that Chen Deming, Minister of the Ministry of Commerce will personally lead the mission. All related departments are preparing for this special visit, while some details of the schedule have yet to be finalized. But what is sure is that the mission will fly from Beijing to Germany next Tuesday, echoing the Premier's call for a "tour of confidence".
More than 100 people from different businesses have been enrolled in the mission. Because most of the businesses were coordinated by China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), purchasing will focus on automobile, aviation, electronic information, manufacturing equipment, and environmental protection. Yao Jian, spokesman for the Ministry of Commerce said that the type and scale of the purchases will be left to individual businesses, while the government restricts itself to the role of bridge.
The 21st Century Business Herald speculates that the amount of money involved may be far more than the previously reported 15 billion yuan. An official has denied this, adding that the government will respect the decisions of the participating companies. He also noted that because China and EU already operate several cooperation programs in high-tech, significant purchase contracts in technology and equipment may be signed.
"Such purchases carry significance beyond their practical value", said Li Gang, an expert from the Research Institute of the Ministry of Commerce. China's decision to send a buying mission to a Europe whose economy is in recession shows the country's determination to develop the opening-up of markets and to reject protectionism. It is, to a certain extent, a response to the trend of "Buy America", commented Li.
Statistics from China's Customs show that in January 2009 China's exports to Europe fell by 17 percent, while imports plummeted by 22 percent, producing a trade surplus amounting to US $11.7 billion. China-directed exports from the four countries targeted by this purchasing trip all shrank, with Britain's exports to China plunging by 41 percent in a single month. Based on such figures, some authorities have anticipated that the British economy may contract by 3 percent this year. As for Spain, its official forecast is that its GDP will fall by 1.6 percent in 2009, with investment down 9.3 percent and an unemployment rate as high as 15.9 percent. Li noted that the severe financial crisis may force EU to abandon some restrictions in order to promote its high-tech exports to China.
This is the first time that China has ever sent such a high-level purchase mission to Europe. To improve the Sino-US trade imbalance, China has sent purchase missions to America in each of the last three years, with the resultant procurement amounting to US$16.2 billion in 2006, US$32.6 billion in 2007, and US$13.6 million in 2008.
(China.org.cn by Fan Junmei February 20, 2009)
