A dazzling array of products from Central and Eastern Europe (CEE) are on display at the first China-CEEC Investment and Trade Expo, which kicked off in Ningbo City of Zhejiang Province, eastern China, on Monday.
With 131 investment programs open for cooperation between about 200 companies from 16 CEE countries and around 300 Chinese counterparts, the trade fair is a fertile trade and investment environment.
"The potential for partnerships is enormous," said Yang Jiechi, a State Councilor, at the China-CEEC Forum on Cooperation Development.
CEE nations will be essential links in the Belt and Road Initiative, and connectivity will help improve infrastructure and economic growth in the CEE region.
The Belt and Road Initiative refers to the modern Silk Road Economic Belt and the 21st-Century Maritime Silk Road, which will boost international trade and strengthen economic ties. It was proposed by Chinese President Xi Jinping when he visited Central Asia and Southeast Asia in September and October 2013.
THE POWER OF CONNECTIONS
China and Hungary inked a memorandum of understanding on promoting the Silk Road Economic Belt and the 21st-Century Maritime Silk Road on Saturday, the first such document China has signed with a European country.
Air China began direct flights between Budapest, Hungary, and Beijing last month to meet growing demand.
It is estimated that these flights will carry about 40,000 Chinese to Budapest each year, and if each passenger spends 3,000 U.S dollars, the average individual spending for Chinese in Paris, that would translate to about 1 percent of Hungary's GDP.
Adam Ruszinko, deputy state secretary for tourism at the Ministry of National Economy, told Xinhua that there are plans to install bilingual signs on street and at hotels so that Chinese travelers are more comfortable.
Poland also understands the potential of the initiative.
"The [Belt & Road] initiative will facilitate more in-depth trade and economic cooperation between Europe and China," said Nick Woyna, managing director of Planika, a Poland-based manufacturer.
He said that the new routes linking these markets will simplify trade, and open the Asian market to European countries, "which are great development opportunities."
NEW ENGINES
China's exports declined 2.8 percent year on year to 1.17 trillion yuan (191.16 billion U.S. dollars) in May, suggesting marginal improvement from the previous month but continued downward pressure on the economy.
Despite a slight drop in bilateral trade volume in the first five months of this year, the market remains upbeat thanks to proactive efforts from China and CEE countries.
Chinese investment in CEE countries has picked up. Chinese firms have invested more than 5 billion U.S. dollars in CEE countries in sectors such as energy, infrastructure and machinery through equity investment and green-field investment, among others.
In addition to commodity trade, cross-border e-commerce has seen positive growth, with beer, wine, chocolate and cosmetics made by CEE countries are popular among Chinese consumers.
CargoPM.com, a Ningbo-based e-commerce platform, has established partnerships with over 500 logistics provider from around the world with more than 150,000 online orders placed each day. The company hopes to make deeper inroads into CEE countries.
Tourism is another key area for bilateral cooperation. Over 130 million outbound trips were made last year by Chinese tourists. However, most headed to Korea, Japan, Southeast Asia and western Europe.
"The tourism market in CEE countries is untapped. With enhanced connectivity and cooperation between the two sides, people-to-people exchanges will surely bring new growth momentum," said Wang Wen, a professor at Renmin University of China.
Last year Chinese Premier Li Keqiang signed the Belgrade Guidelines for Cooperation between China and 16 CEE countries, also called the 16+1 Cooperation Framework, to promote economic cooperation.
