YINCHUAN, Ningxia - China must increase the exports of high-tech and high added-value products to Arab countries, a Chinese official said.

"China's exports (to Arab countries) are mainly labor-intensive products, and the export of high-tech and high added-value products need to be promoted," Wang Shouwen, director of the foreign trade department of the Ministry of Commerce, said.

Ding Jie, vice-president for Greater China of Roland Berger Strategy Consultants, also said, "China's exports to Arab countries are low-end, and trade between different countries is not balanced, but the trade prospects are promising."

China's export growth contracted from March through June and its manufacturing activity continued to decline for a third consecutive month in September. However, its trade with Arab countries increased by 33 percent in the first half compared with last year, 7.2 percentage points higher than the nation's foreign trade growth rate in the same period.

"China's trade with Arab countries accounted for less than 5 percent of its total foreign trade volume in 2010, but Arab countries have been introducing economic structural reforms in recent years, and infrastructure development and construction are in progress, which provide unprecedented cooperation opportunities for Chinese enterprises," Wang said.

Many industries in most Arab countries are small and medium-sized enterprises of limited technical and financial capacity, which affects the level of manufacturing technology in use.

Adnan Ghaith, board member of the Amman Chamber of Industry, is not satisfied with China's exports of high-tech and high value-added products, including production lines and machinery, but he also hopes the transfer of technology will expand.

"To reduce the technology gap with advanced industries at the international level, we look forward to benefiting from the distinguished Chinese experience through development of industrial technology cooperation plans between Arab and Chinese companies, in a manner that targets integration and contributes to mutual benefit," he said.

Huo Jianguo, director of the Chinese Academy of International Trade and Economic Cooperation with the Ministry of Commerce, suggested China to improve its trade structure with Arab countries.

"China's trade with the Arab countries grew very rapidly in the past years, but the trade structure is limited to the scenario that China imports resources and exports low-end and low value-added products," he said.

Huo expects China will increase exports of high added-value products to Arab countries, which "benefits the development of Arab countries, but also expands China's exports".

China's exports to Arab countries increased by 14 percent to $35.4 billion in the first half year-on-year. Exports are expanding across many sectors from traditional textile products, clothes and consumer goods to automobiles, home electronic appliances, harbor machinery and telecommunication facilities.

China Daily

(China Daily 09/29/2011 page13)