China to build trade centre in Thailand

China to build trade centre in Thailand
8 Jan, 2011

BANGKOK: China plans to build a massive $1.5 billion commercial complex in Thailand that will enable traders to send "Made In China" goods around the world without paying pricey tariffs often imposed in the West, Thai officials and Chinese state media said.

The China City Complex is expected to house more than 70,000 Chinese traders in a sprawling 5.4 million square-foot (5 lakh sq-meter) facility to be built on the eastern outskirts of Bangkok , Vijit Yang, chairman of the ASEAN-China Economic and Trade Pro-motion Association said on Friday.

China signed a free trade agreement with Southeast Asian countries in January 2010 that reduces or removes tariffs on traded goods. Passing the goods through Thailand will allow Chinese traders to avoid the tariffs imposed by the US and the European Union on many of their exports, said Vijit.

The plan will also give the appearance of reducing China's trade deficit with those countries, which hit $16.8 billion with the US in November and $13.6 billion with the EU. The surplus has become an increasingly sensitive issue in the EU and the US, which buy the vast bulk of China's exports, prompting traders to look for other ways of penetrating those markets.

Overall, China's trade has remained robust despite the global economic crisis. Exports in November jumped 34.9% from a year earlier to $153.3 billion, boosted by a surge in sales to other developing economies, which are recovering from the crisis faster than US & Europe.

economictimes.indiatimes.com

China to construct ‘China City Complex’ in Thailand
January 12, 2011 (China)https://teakdoor.com/images/imported/2011/01/984.jpg

China had entered into a free trade pact with the Southeast Asian countries in January 2010 pursuant to which the Chinese traders enjoy a zero or low duty access in these countries for their exports.

The country now intends to construct a vast commercial complex – China City Complex in Thailand with an investment of $1.5 billion. The complex would be set up on an area of 5.4 million square-feet that is 500,000 square-meters in the fringes of Bangkok, and is believed to house over 70,000 Chinese traders.

Construction of this complex is planned to start from March 2011 and is scheduled for completion within 18 months thereafter. Various China made items like ornaments, household products, garments, etc. would be sold at the complex.

Once the complex starts, the Chinese traders would be able to sell their goods to people from different parts of the world through Thailand, which would help them to save the heavy duties that they need to pay on their exports to many of the countries, particularly western countries like the Europe and the US.

The initiative is also seen to help China to cut down its trade deficit with these countries, which touched $16.8 billion with the U.S. and $13.6 billion with the EU in November, 2010.

By and large the global recession has not had much effect on China’s trade which kept registering healthy growths. Also, driven by the rise in the sales to other developing nations which are reviving from the effects of the economic slump at a greater pace than the EU and the US, China’s exports for the month of November 2010 registered a rise of 34.9 percent to touch $153.3 billion from that registered a year ago.

But then the extra stocks lying with the EU and the US, the major importers of Chinese items have become a cause of concern and are thus inducing the traders to search newer ways to infiltrate in these markets.

fibre2fashion.com

And so the Chinese economic takeover continues. How some people in the West are oblivious to it is one of the great mysteries of our time.

Thai-Chinese trade centre to bring benefits to all
PETCHANET PRATRUANGKRAI
23-01-2011

There are many concerns among private enterprises that they will lose competitiveness after China establishes a Bt45-billion (US$ 1.47 billion) Thai-Chinese trading complex on Bang Na-Trat Road. Will you move on the project, and how do you respond to these concerns?

The project has been put forward according to normal procedures to the Board of Investment. It will not affect Thai enterprises, but increase export opportunities for small and medium-sized enterprises.

Currently, only large enterprises can be exporters. The Thai-China trading complex will increase Thai SMEs' opportunities to become exporters and create links with other buyers.

The private sector recently submitted a letter to concerned agencies voicing worries over the complex. Have their been any studies to estimate impacts from the project?

I plan to meet with the Federation of Thai Industries, the Board of Trade of Thailand, the Thai National Shippers' Council, and related trade associations such as traders in Bobae market, and Platinum and Pratunam, very soon to clarify understanding for the need of the project.

It is not a minor deal, but a giant issue concerned with international relationships. Private enterprises should listen to the facts first before voicing their concern.

Problems arose in the United Arab Emirates and Spain after China established wholesale centres in those countries. Will Thailand face similar problems, as local enterprises suffer from a flood of Chinese goods?

The project will create win-win benefits for Thailand and China, as China will not only build its wholesale centre here, but will also set up manufacturing in Thailand in the future, which will create at least 70,000 jobs for Thais. Unlike the wholesale centres established in the UAE and Spain, in which Chinese investors occupied 100 per cent of the trading areas, Thai enterprises will have a minimum of 30 per cent and up to 50 per cent of the trading area.

Will Ashima Group get any privileges for investment here? Wholesaling business is restricted to Thais under the Foreign Business Act (FBA). Does the company have to be investigated over its ownership structure and nominee, as it would hold a majority share?

The company has come to Thailand under Board of Investment privileges. We cannot prefer only investment from Western countries. With the rising of China comes the opportunity for Thailand to form closer cooperation with the Chinese and grow together. I cannot say what the shareholding percentage between Thai and Chinese enterprises will be. However, the firm will not break the FBA and is allowed to invest here under the act.

Under the FBA, a wholesale or retail business with a minimum investment of Bt100 million may invest in the country and hold a minority share up to 49.99 per cent.

However, there are still questions over whether the firm will have a Thai nominee, as previously the company said it would hold 100 per cent of the trading complex here.

asianewsnet.net

trying to get my head around those figures
500,000 sq m, so approx 700m x 700m.
Approx 7sqm for each of the 70,000 traders
then post #4 says 70,000 jobs for Thais
It's starting to get a bit crammed in here.

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Originally Posted by genghis61

It's starting to get a bit crammed in here.

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suspect the jobs are of the flow on type , not necessary on site .

^ oops my error "but will also set up manufacturing in Thailand in the future, which will create at least 70,000 jobs for Thais"

Locals call on govt to ensure fair practice at ThaiChina centre
Petchanet Pratruangkrai
January 26, 2011

The influx of Chinese investors and goods has prompted local industries to call for the government to implement stringent measures and enforce trade laws to ensure fair practices.

Setting off alarm bells is the recent entry of the ThaiChina International Products City project, which would draw huge investment in the wholesale business and could threaten local small and mediumsized enterprises.

Government agencies, especially the Commerce Ministry, have been urged strictly to enforce pertinent laws such as antidumping regulations and the Competition Act to ensure a level playing field for local operators.

Deputy Commerce Minister Alongkorn Ponlaboot yesterday met with representatives from the Federation of the Thai Industries (FTI), seven trade associations - auto parts and accessories, furniture, toys, lifestyle products, gifts, premiums, and decorative items - and local retailers and wholesalers.

He said most of the representatives raised competition as a key issue, fearing that their higher production costs would put them at an insurmountable disadvantage.

The government's policy is to lure more foreign invest?ment, and China is one of the biggest potential sources.

To assess the positive and negative effects on local business, a special committee was set up yesterday to monitor the Bt45billion Products City project closely. The committee will focus on competition between Thai and Chinese producers and the benefits to consumers.

FTI deputy secretary general Panitarn Pavarolavidya said the counฌtry needed such a panel to measure the impact and maximise benefits from the development.

"We can't refuse the investment. The project from China won't only create a negative impact on Thais, but also a pos?itive outcome," he said.

For instance, local retailers and small manufacturers that directly contact Chinese firms will be able to shortcut their trading. However, upstream producers with similar merchandise may lose competitiveness because of different pro?duction costs.

The government should negotiate with Ashima Group about increasing Thailand's trading areas in the complex from 30 per cent, Panitarn said. As Thailand is the landlord, Thai enterprises should obtain a bigger share of the trading area.

The government should seriously increase consumerprotection standards to ensure that lowquality goods cannot be sold in the market, he added.

Somchai Pornrattanacharoen, president of the Thai Retailers and Wholesalers Association, said the government should tighten law enforcement to prevent the dumping of Chinese goods.

Thailand has retail guide?lines to punish unfair practices by traders. The government should include dumping as one of the major areas of concern in the guidelines, Somchai said. That is because Chinese goods will flood the nation after the ThaiChina Products City is established here.

Manit Rattanasuwan, chair?man of the Social Marketing Academy of Thailand, said the government should strictly enforce the Retail and Wholesale Business Act to increase protection for Thai retailers in particular.

nationmultimedia.com

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Originally Posted by Mid

China signed a free trade agreement with Southeast Asian countries in January 2010 that reduces or removes tariffs on traded goods. Passing the goods through Thailand will allow Chinese traders to avoid the tariffs imposed by the US and the European Union on many of their exports, said Vijit.

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So do they plan to rebadge them as thai goods or how is that supposed to work?

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Originally Posted by Fabian

Quote:

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Originally Posted by Mid

China signed a free trade agreement with Southeast Asian countries in January 2010 that reduces or removes tariffs on traded goods. Passing the goods through Thailand will allow Chinese traders to avoid the tariffs imposed by the US and the European Union on many of their exports, said Vijit.

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So do they plan to rebadge them as thai goods or how is that supposed to work?

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The Chinese would simply label them as "Made in Thailand" and ship them via a Sino-Thai company.