Is Latin America a Strategic Spot for the Chinese market?
Over the last fifteen years, Chinese Government has experienced an increasing attention on the possibilities that Latin American market can provide to them.
This article seeks to shed light on the current situation between both regions, and their future possibilities.
According to Chinese policy, in recent years the country has developed a new global strategy: Africa, Latin America and the Caribbean have become as key-players on its rise to the international scene.
Since 2000, China has settle its action on bilateral free trade agreements and loan commitments. Despite its evolution, the role assumed by China is yet far from a real partnership with Central and South America.
In future, commerce and investment will be the basis for establishing a lasting partnership and a socio-economic development in manufacturing, labor, services and financial support.
Which are the main factors that define their relationship?
The relationship is based on three basic purposes:
- Political Relations:
China has currently become a permanent observer in the Organization of American States and a member of the Inter-American Development Bank. The country also participates actively in the Economic Commission for Latin America and the Caribbean.
In addition, China has signed free trade agreements and institutional arrangements with some of the regional countries.
- Economic Relations:
China plays a leading role in the future economic scene in the region. Latin America exports to China are raw materials, such as minerals, ores, oil seed, meat, cooper and soybeans.
Economic Relations are mostly conducted by Chinese Public Sector: Trade, Investment and Financing enhance the mutual cooperation and the collaboration is constantly increasing.
The Chinese investment effort has been particularly strong in two important fields: Energy and Infrastructure.
- Cultural Relations:
Chinese cultural expansion is closely linked of their latest conception of International Relations based on pragmatism and soft power.
In recent years, many Confucius Institutes have started their activity in Latin America, but also Spanish language has experimented a huge growth in China: educational and cultural exchanges are on the rise.
Is there ROOM ENOUGH for a common trade based on high value-added?
Latin America suffers from a scarce innovative effort, while China struggles to turn its economic system into an innovation model, highly rooted in the high value-added.
ICT-based services, Information technology and also Ecommerce are expected to grow in Latin America. The Global trends in Crossborder Ecommerce will be a challenge to the international integration of Latin America and a great opportunity for MSMEs.
Are you already familiarized with Crossborder Ecommerce and B2B, B2C, C2C, B2G and C2B Models? In search of an Ecommerce Consultancy Agency?
From 2 Open we can help you develop your business and to boost your company into International Sales.
2016 Springtime At The Canton Fair
The Canton Fair, held since 1957 in the city of Guangzhou, is currently the largest International Trade gathering in China, and the most successful one in the country. In Spring and Autumn, and for fifteen days, the city brings together importers and exporters from all over the world.
Its 2016 Spring celebration, divided into three sessions of five days each, aims to meet the demands of any business person: Electronics and Household Electrical Appliances; Lighting Equipment; Vehicles and Spare Parts; Machinery, Hardware and Tools; Building Materials; Chemical Products, Energy Resources; Consumer Goods; Gifts; Home Decorations; Textiles and Garments; Shoes; Office Supplies, Cases and Bags; Recreation Products; Medicines, Medical Devices and Health Products; and also Food.
But why exactly is this event so appealing?
Well, with 15,000 manufacturers and fabricants, and over 60,000 stands, it’s not a surprise that it has gained such popularity, besides, its ability to accommodate all of them and generate new trade flows makes it the largest fair in China, and probably in Asia.
Those who attend The Canton Fair can find answers to all of their business needs: economic, technical and human cooperation; logistics, transportation and distribution; insurance and commodity inspection; advertising, public relations and contacts with some of the most buoyant businesses today, you name it.
Its attractiveness is also equal to its capacity to generate wealth among its members: only in 2015, commercial exchanges reached 55.066 million USD.
Who attends to the Canton Fair?
Despite the uncertainty in the global economy and after a slight decline in the last two years, 2016 has been considered a good year to participate in the Canton fair. With more than 24,000 companies confirmed, optimism among the organizers and participants has returned to stay and strengthen the fair’s position as an already global event.
Although the event’s main target group were Asian buyers, in recent years, the presence of Westerners has grown significantly becoming a meeting of international nature in which the presence of developing regions such as India, Latin America and Africa has also increased. Curiously enough, the presence of participants from Hong Kong and Taiwan has been reduced each year.
What are the benefits of the Canton Fair?
Firstly, the continuous and growing exchange of goods between participant countries facilitates the development of the Chinese trade, and consequently, strengthens the Chinese economy.
Secondly, the Canton Fair celebration generates high-level synergies, not only among the participants but also among outside companies. The fair generates quality information on the future of the economy, the most demanded products, leading companies and, goods and services.
Finally, due to its attraction capacity and longevity, the fair has contributed to develop a wide range of alternatives for visiting and enjoying the tour: visas, tickets, hotels and translators are easy to obtain through specialised agencies.
2Open attends every year to both the Autumn and Spring Canton Fairs, being up to date with what is happening in China is a challenge even for our dedicated team who are constantly on the scout for new trends in the industry. We strongly advice anyone who is intending to engage in any business related activities with China to attend this event, it is a great opportunity to grow any business, however, if you want to really turn your business around you should contact 2Open.
Our goal is to understand our clients business needs in order to provide the best possible services. If you have any questions or require any information about our services, please do not hesitate in contacting us, our group of specialists will happily assist you.
This article was edited by Andres Arroyo Olson from 2Open.