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China is building a large-scale trade center to showcase the nation's products in the United Arab Emirates, which is expected to open in the second half of the year, said Wei Jianguo, vice-minister of commerce.
The Dubai-based center will be the largest trading platform China has ever established overseas, according to Wei.
"The distribution center for Chinese products is a fresh move in local enterprises' strategies to go overseas," he said.
Describing the center as a Chinatown of sorts, Wei said the center will cost a total of US$300 million and accommodate about 4,000 Chinese companies.
He believes the trade center will foster stronger trade ties between China and the United Arab Emirates.
Bilateral trade between the two countries totaled US$5.8 billion last year, which is expected to reach US$8 billion this year and US$10 billion in 2005, according to Wei.
But the center aims to reach beyond the United Arab Emirates.
"The center, backed by a good location, will become an expressway for Chinese products in its neighboring regions," he said.
The United Arab Emirates, which has a regional position comparable to Hong Kong in Asia, has strong trade links with the Middle East, Africa and East Europe.
Dubai is the world's third-largest harbor for entrepot trade, after Hong Kong and Singapore.
The UAE is also famous for its trading environment as it has low tariff rates and few taxes on income, added value and consumption.
China's entrepot trade in the Arab nation accounts for 7 percent of China's annual foreign trade, Wei said.
He expects the center will also help build the image of Chinese products in the Middle East and attract business people from the region to co-operate with Chinese groups.
Inexpensive and good-quality Chinese products will also offer more choices to people in the region, he added.
Wei predicts the center will have a yearly trade of US$1-1.5 billion worth of Chinese products.
The center, a large business mall, will be composed of a trading market, warehouses and apartments.
The market will cover an area of 150,000 square meters with more than 4,000 stands. The warehouses and apartments will cover 45,000 and 140,000 square meters respectively.
Many Chinese companies are planning a presence in the region which they view as an emerging market and the opening of the trade center is a timely move.
According to Wei, they have accepted applications from many Chinese companies wishing to enter the trade center.
"We are carefully picking the qualified companies who produce high-quality products and have no problems in intellectual property rights," he said.
(China Daily April 7, 2004)
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