| No poetic atmosphere is felt in Yiwu,
a small city in Zhejiang Province where people expect
to find waterside towns with winding streams, boats, arched
bridges and whitewashed old dwellings.
Instead, the city is consumed by the mood of commerce
as money flows everywhere and everyone dreams of striking
it rich.
There are 200,000 businessmen arriving in the city,
the country's largest small-commodities wholesale market,
every day to seek their property dreams with a daily
cash flow of 287 million yuan (US$34.5 million).
What they face is 320,000 kinds of products including
nearly all everyday household items imaginable from
embroidery needles to athletic socks.
Surfing the sea of commodities are not only domestic
businessmen but also overseas traders.
More than 5,000 foreign merchants permanently live
in Yiwu. Thousands more travel to the city every year
on buying trips.
More than 6,000 overseas enterprises and merchants
have opened accounts in local banks. Even big names
like Wal-mart and Carrefour made Yiwu their purchasing
base.
Saleem Khan, 57, chairman of Cana Imports LTD, came
to Yiwu in 2002 for the first time.
Now he visits the city every month, bringing six containers
of products home.
Abdul Moti, 47, vice-manager of Almasmoum Group Company
based in Syria, purchases 10 containers of goods every
year from Yiwu. During the first six months, his company
purchased US$200,000 worth of toys and jewellery.
The city has become a key link in the chain of world
commerce with daily exports of 1,000 containers. Most
local traders have set up relationships with overseas
counterparts, selling products to 188 countries and
regions.
But it is only the beginning of the city's ambition.
"We will take 20 years to develop Yiwu into an
international commerce city," said Lou Guohua,
Party secretary of Yiwu.
He said Yiwu will try to become an international centre
for small commodities logistics, manufacturing, research
and development.
The prosperity of the Yiwu market not only benefits
local businessmen, but also people in other countries,
he said.
Many international small and medium-sized enterprises
can make profits by processing and trading Yiwu products
at reasonable prices and high quality, which means more
jobs will be created.
The Yiwu market will not only be a stage for Chinese
products, but also for international commodities.
"Products from 20 countries are now traded in
Yiwu and more are coming," he said.
Lou said the Yiwu market is aimed at gathering products
from around the world, not only Chinese products.
"We are planning to set up the biggest supermarket
in the world and establish an international shopping
paradise," Lou said.
The blueprint has been drafted and the international
commerce city is taking shape.
Yiwu has finished infrastructure construction for a
commerce centre to complete the second phase of construction
of the Yiwu International Commerce and Trade City which
is to start operation on Friday.
Covering 1.2 million square metres, the mall will become
the world's largest wholesale market for small commodities
with 23,000 booths.
The first-phase construction of the mall was finished
in 2002 as the city's original wholesale market was
bursting out of its walls.
Booths in the mall can quickly perceive changes taking
place in the international business world and weave
a business network linking all parts of the world.
Credit construction
Besides infrastructure construction, the city is paying
more attention to credit and quality control.
Ever since the start of the market 20 year ago, Lou
said, Yiwu has been sparing no efforts to build up the
credibility and crackdown on fake products.
"We know that the prosperity of the market heavily
relies on credibility," he said, "Quality
control and credibility establishment is key for Yiwu
to be integrated with the world."
Strict standards for market access have been made to
ensure only qualified products can be traded in the
market.
Vendors are taught to pay great attention to their
operation credit and product quality. They have been
told they would ruin their business opportunities if
they have damaged the reputation of the Yiwu market.
The local government has made a blacklist for any violators
and vendors will be kicked out if they are found selling
fake or pirated products.
The market has built up a business environment in which
"being faithful is being honorable."
The efforts have paid off as good reputations have
been established among foreign merchants.
"One thing I like here is that people are very
honest and hard-working, especially the independent
business people," said Khan of Cana Imports which
has been a leading wholesale distributor for over 17
years in Canada, "They will fulfill their promise."
Challenges
But challenges still exist on the way to Yiwu's dream
with an increase in international trade barriers.
Yiwu enterprises are threatened by anti-dumping charges
which could occur anywhere in the world on any products.
The Yiwu-based Zhejiang Mengna Knitting Co Ltd, a major
sock exporter, is one of them as the United States is
on the way to imposing quota limits on Chinese sock
exports.
The US textile industry petitioned the Bush administration
in July to curb the import of socks from China. The
US Department of Commerce has been conducting an investigation
and a final decision is expected to be made later this
year.
Lu Sanhao, executive vice-president of Mengna, which
has a large exposure to the US market, said the company
is closely watching the appeal.
"The US trade limits will cut our total exports
by one third as the United States is our largest overseas
market," said Lu.
He said the company never competes with unreasonably
low prices. Instead, export deals have been made because
of the company's timely deliveries, high quality and
good service.
Although the company will not collapse if the US limit
is applied, it is planning to make more efforts to tap
other international markets and expand domestic sales.
To make their international trade smoother, the company
is also trying to pass accountability certification.
Social Accountability 8000 is a set of voluntary labour
standards initiated by the US-based Social Accountability
International (SAI) in 1997, which ensures that retailers,
brand companies, suppliers and other organizations maintain
just and decent working conditions throughout the supply
chain. More Chinese firms are told by their European
and US clients they should meet these criteria before
they can will conduct business.
Lou said the local government has been telling local
vendors and enterprises to enter the international market
by abiding by the rules of the World Trade Organizations
(WTO).
Local businessmen are invited to attend classes about
WTO rules, commercial English and Internet use with
all costs covered by the government.
But Lou said if any antidumping cases occurred, the
government will unite the industry associations and
enterprises to respond to the appeal.
"We believe the government will take some measure
to protect our interests," said Lu.
Source:China Daily
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