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China to construct 'China City Complex' in Thailand
Jan '11
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 News Desk - India

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