SEMINAR ON "HOW TO DO BUSINESS WITH CHINA"

 

In order to establish new contacts and expand business cooperation with Chinese companies and to learn about legislation regulating trade with China, common practices, and culture, Belgrade Chamber of Commerce organised on July 8, 2009 the seminar on


HOW TO DO BUSINESS WITH CHINA,


in presence of the representatives from the Embassy of the Republic of China in Belgrade and Faculty of Political Sciences from Belgrade.
The aim of the event was to provide detailed information to domestic companies about operating conditions of the biggest market today, in order to facilitate their access to this market. Jelena Ćupina, Deputy Secretary of the Centre for International Economic Relations of the Belgrade Chamber of Commerce, presented the report on the conference ''EUROPE AND CHINA'' Held in Brussels on May 20, 2009, in the eve of the China-EU Summit.
The conference reviewed the impact of the global financial crisis on China's economy. In the first quarter of 2009, China had the GDP growth of 6.1% which is much lower than in the past decade when it used to be a two-digit number. Chinese foreign trade turnover shows 25% decrease, with most of the export-oriented companies going through a very hard period. On the other hand, European Commission estimates that by the end of the year the EU economy will reach 4% decline, while the unemployment rate will be 10.9% (8.5 million workers).

China has adopted a number of stimulating measures in order to ensure economic growth and social stability.

  • In order to assure domestic demand, Chinese Government committed itself to increase investments and cut taxes (586 billion USD in total).
  • In order to improve their offer, ten of the biggest producers in China are undergoing restructuring and implementing innovations.
  • In order to improve production, large sums are invested in technical innovations, that is, research and development.
  • In order to ensure economic growth, creation of new jobs is to take place.

This package of measures has already showed some encouraging results: investments are growing; consumption as well – retail sale increased by 15% in April; real estate market is recovering. Though, there are still some serious structural problems, such as, disparity in profits, uneven regional development and imbalance in development between urban and rural economy.

Over 10 million people in China still live on the edge of poverty, which equals the whole population of Belgium. Each year, China has to create 30 million new jobs, which equals the total number of employed in the Great Britain. China has shown extraordinary readiness and capacity to face down the global climate changes. China is a country that promotes win-win type of cooperation, that is, mutually beneficial.

''China is not a threat, but an opportunity for Europe'' – was the main message of the strategic dialogue led in Brussels.
Mr. Yang Chun Min, First Secretary in the Embassy of the Republic of China in Belgrade, pointed out to the most potent sectors of economic cooperation between Serbia and China: agriculture, industry, trade. According to the data of the Chinese Statistic Agency, Chinese GDP in 2008 was 4,625.7 billion USD (9% higher than in 2007).
PhD Dragana Mitrović, Minister Adviser for Politics and Economy in the SRY/S&M Embassy in Beijing in 2002 – 2004 and Head of Department for Asian and Far Eastern Studies at the Faculty of Political Sciences, informed the participants about regulations, practices, culture and prospects for cooperation with China.

In the report titled ''DOING BUSINESS WITH CHINA – FROM LEGISLATION TO REALISATION'', thirty-years-long reforms in China and opening to the world are presented, as well as the results of hard work, endeavors and coping with challenges. The following effects have been achieved:

  • 400 million people are "saved" from poverty, and 240 million from absolute poverty
  • fourth ranked economy in the world
  • second ranked country in the world in terms of purchasing power parity (PPP)
  • GDP per - capita 5.300 USD
  • 260 million of Internet users
  • Education system – ten years of mandatory schooling, since 2006 free, otherwise expensive
  • 319,700 of young Chinese returned to homeland after completing the studies abroad
  • 1.23 million foreign students from 180 countries graduated from Chinese universities
  • In 1997 and 1999, Macao and Hong Kong returned to China
  • 30 million people worldwide study Chinese language
  • China hosted 2008 Olympic Games

Potential areas of Chinese investments in Serbia:

  • Machine industry
  • Mining industry
  • Heavy construction equipment
  • Automobile industry
  • Agriculture
  • Tourism
  • Textile industry
  • Electronic industry
  • Telecommunications
  • Transportation - metro
  • Construction of bridges
  • Port infrastructure
  • Hydro power plants
  • Gas pipelines
  • Inland waterway transport
  • Renewable energy.
Director of PILOT TOYS company, Mr. Darko Popović, talked about his 10-year experience in doing business with Chinese companies.