Chinese Training Program Report
Written by: Faysal Abdelaaty:
Cairo Chamber of commerce has participated in the training program that was organized by
the Chinese chamber of commerce in the period from 5 to25th April in Beijing. There were
about 21 participants from 8 Arab countries, namely; Egypt, Yemen, Palestine, Comoros, Sudan,
Mauritania, Bahrain, and Tunisia.
Eng/Ibrahim Elaraby, (chair of the chamber of Cairo) said that Mohammed Salah Eldien Shalaby,
senior public relations specialist, was nominated to be a representative for the chamber to participate
in that program. He offered a full report immediately after returning. The report shows that they had
discussed many commercial and economic topics, which are common between china and Arab
countries.
The topics tackled the lack of commitment by some Chinese companies in its contracts with their Arab
counterparts in general and Egypt in particular. The report mentions Chau Giatshang, the general
manager of Asia and Africa at the Chinese ministry of commerce, who has previously served
as China’s trade commissioned minister in Cairo. He was a lecturer at the program, he asked for
the need to place a copy of the contract between the Egyptian and Chinese counterpart's at all
commercial offices of the embassies of china in all Arab countries.
Thus, allowing those offices to follow up on any problems that could happen between Egyptian
and Chinese companies, in addition to work on finding a suitable solution. He pointed out that
China's commercial offices in all Arab countries offer inquiry services about the Chinese companies
in its various specializations especially reputable and reliable ones that Arab companies can generally
deal with.
Elaraby added that the report also pointed out that regarding the Chinese companies’ lack of
commitment , the Saudi commercial consultant in China " Khaled Halawany" stressed on all
the participants from Arab countries the necessity of warning their commercial cambers’ members
to write the ID numbers and home addresses in Arabic-Chinese contracts, not the work address only.
This is to ensure that they get all their full rights through the contracts with Chinese. He pointed out
that this matter is of extreme importance. Elaraby shows in his report that this requirement was
endorsed by Chinese officials at the trade academy of Chinese ministry of commerce "AIBO,"
especially when there is no contractual obligation on the Chinese side, or in the case of complaints
to the commission for resolving disputes at the Chinese ministry of commerce, which has branches
in the Chinese chamber of commerce.
This enables the affected companies to receive an adequate compensation.
The report added that the Saudi commercial consultant mentioned an incident for a Saudi company
dealing with a Chinese one. The latter breached the contract; they resorted to the settlement
committee to resolve the dispute. Both companies had included their ID numbers and addresses,
not only the work address in the contracts accurately. The dispute was settled in favor of the Saudi
company, granting it $ 5 million from the Chinese company that didn't abide by the terms
of the contract.
The chairman ensured they had discussed the commercial and economic relations between
china and the Arab countries. The consultants in the Chinese Ministry of Commerce said that
the Arab countries represent China’s seventh worldwide commercial partner. The total trade volume
between both parties is $108 billion in 2009 and in 2010 it was $145 billion increasing by 34%. By
the end of 2011 the trade volume between the two sides has reached $196 billion with an increase
of 35%, while Chinese imports from Arab countries at the end of 2011 became $118 billion, and
the volume of Chinese exports was $78 billion.
Elaraby mentioned there was a lecture by the director of the Chinese chamber for light industries
"Lei Changing". It showed that the members of that council are 120 members. They cover various
Chinese regions. That council specialized in placing the future plans of the chamber, and
the companies which are members at the chamber, their products include "shoes, bags, bamboo
products, plastic, gifts, accessories and stationary…"
Membership at the chamber is optional. Its members are around 13,000 members.
There are 100,000 companies operating in different regions of china that produce these products.
If the member companies don’t pay their fees for a period of 3 consecutive years, the membership
is cancelled.
The annual fees for small and medium institutes don't exceed 2000 Yuan per year, while for big ones
it doesn’t exceed 30000 Yuan per year. Corporate membership fees represent an income source for
the chamber, also the exhibitions for the products of these companies. The government does not give
any financial support to the chamber pointing out that one of the most important advantages offered by
the chamber to its members is facilitating loans from banks, and the private financial institutes.
Small and medium institutes represent around 95% of the total chamber members where as larger
ones represent 5% only.
Elaraby elaborated that "Chen Min", director of external relations Chinese council for the development
of international trade, was among the lecturers in this program, which pointed out that the Council
has 50 branches in different regions inside China as well as 16 branches outside China, such as in
the UAE, Japan and USA. They highly wish to open new branches in other countries such as Egypt,
Brazil, and India, pointing out that this Council focuses on promoting leather products, garments,
electrical and electronic appliances and some other products. He also pointed out that
the organizational structure of the Council includes some departments, such as "fair administration -
public relations - information - trademark and patent invention - commercial Arbitration Commission
and the competent international economic resolve any dispute between Egyptian and Chinese
companies.
While "Lynn Downing", lecturer from the Association of International Cooperation of small
and medium businesses, stated there are 10 million small enterprises and medium officially
registered and contribute with 50% of the total state income from taxes. The Chinese
government helps small and medium business owners introduce different countries to their products
through support of the owners of these institutions by paying the cost of participation in foreign
exhibitions, ticket fees, hotel accommodation, and tax cuts especially in case of exporting. She added
that China has free trade agreements with Hong Kong, Taiwan, New Zealand, South Africa, Norway,
Australia, Costa Rica, and Singapore. She noted that the Chinese government is doing its best to
provide all facilities for factories and research centers in order to change its motto to
" Invented in China" instead of "Made in China" in order to stimulate invention and innovation.
Small and medium enterprises in China accommodate about 75% of the number of graduates
annually and represent exports 68% of the total exports of China. There is a competent administration
for controlling the quality of products that are consumed locally only "in China." The products that are
produced for export are not subjected to the control of this administration, because exported products
are produced according to the specifications required by the importer from each country. There are also
programs for training and qualifying administrators in those institutions. The number of trainees
in the last five years reached 10,000 trainees. There is a town called "Changho" to train technicians
specialized small and medium-sized enterprises.
Program lecturer and head of the legal department at Chamber of Commerce for the import and export
of textiles, Wang Jenk, said that China is one of the largest producers and exporters of textiles
in the world. Not all textile producing companies in China are members in the Chamber, as
membership is optional, she added. The Chamber’s Legal Department works to solve problems
and cases against Chinese companies such as dumping, anti-subsidy, and raising tariffs.
A research team will be sent to the country where there are lawsuits on these issues.
There is a team being prepared to be sent to Egypt to consult with the Ministry of Industry
and Foreign Trade regarding the additional tariffs; 10% imposed by Egypt on imports of textiles
and polyester from all over the world. They were informed that the decision was issued by Egypt to
protect textile its own textile companies own, especially in the city of Mahalla. The topic has been
discussed during this year. The lecturer also mentioned that the World Trade Organization estimates
the number of dumping cases involving Chinese products, in the world over the past year,
by about 825 cases and 46 combat support cases. They turn to their commercial representation
offices in such cases to check the amount of imports and exports of any product and its price with
respect to these issues.
Elaraby added that Han Shangian was among the lecturers as well, from the Chinese chamber
of commerce for importing and exporting electrical and mechanical products. Shangian confirmed
that there was a common chamber created with the Russian side. This helps in establishing
exhibitions between both sides that help promote products outside both countries.
These products in the chamber are "textile industry, leather products, ships, electrical,
and engineering products…” The numbers of the companies that are registered at the chamber are
about 800 companies and the numbers of companies that export electrical and mechanical
products in china are about 1000 companies, taking into consideration that joining the chamber is
optional.
Elaraby revealed that the training program includes another extension, which is visiting the territory
west of china, "Xinjiang" to check out the factories which are specialized in the production
of "mushrooms, sauce, jam, juice, cotton. In addition to visit the chamber of commerce in Xinjiang
and the Ministry of Trade, and the exhibition authority. Exhibition members asked from
the members of the Arab delegation media to notify the chambers of commerce at their countries to
the date by establishment of the international exhibitions in their own countries, in order to subscribe
to see all the specialties, and the products offered in it.
The following data shows the volume of trade between China and Arab countries between 2008
and September 2011.
