Chinese Training Program Report

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Monday - 28 January 2013 - 7:40 PM


          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




         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




        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




        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.