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Heads of State, trade ministers and leaders of multinational companies will meet Monday in Shanghai to hear President Xi Jinping describe China's role as a global importer.
Beijing makes the International Import Exhibition of China (CIIE) the most important event of this year and the proof of its commitment to globalization, while its economic growth slows and that the commercial battle with Washington is continues.
But the US is pushing the exposure and European countries are generally sending lower-ranking ministers, with diplomats expressing skepticism about Beijing's commitment to reduce trade barriers and complaining about the confusing organization of demonstration.
"They could take advantage of the opportunity to make real announcements about openness and reform without giving the impression that they are responding to US pressures. This is what many countries have called for, "said a European diplomat.
Xi is expected to use a speech Monday to continue the efforts undertaken in Davos last year to introduce China as a guardian of the international trade order. According to analysts, it is likely to point out that China's imports have increased on average by 9% per year over the last decade, thereby outpacing export growth, reaching $ 2.1 billion. last year.
China has recorded a historic deficit with its current account – a large measure of trade in goods and services – in the first quarter of this year, a trend that, according to economists, would become more common as a product imports. Industrial as computer chips increase and more Chinese travel abroad.
Foreign companies and governments hope that Xi will announce tariff cuts, which are on average higher than those of developed countries, but lower than those of developing countries, as well as reforms to eliminate various non-tariff barriers to trade. trade.
"China will want to demonstrate to the ITTC that it is a global importing country and not just an exporter. That's great, "said Kenneth Jarrett, president of the American Chamber of Commerce in Shanghai. "It will be equally important that President Xi Jinping takes advantage of his opening remarks to announce breakthroughs in opening markets."
Beijing's "Made in China 2025" plan is at the top of the list, with the authorities planning to increase the market share of domestically produced products in high-tech industries, from medical devices to robotics, and Beijing favors domestic companies in government procurement.
Foreign governments are also worried about Beijing's use of its consumer market as a diplomatic weapon, thus reducing the flow of goods and tourists imports, as in a clash with Seoul last year where the trade had fallen sharply.
Washington said it would not send any delegation to the event. "We are encouraging China to level the playing field for US goods and services, and China needs to make the necessary reforms to end its unfair trade practices," said an embassy spokesman.
The presidents of the Czech Republic and Switzerland will take part alongside Pakistan's Prime Minister Imran Khan and Hungarian Prime Minister Viktor Orban. Other senior officials come mainly from developing countries participating in the China Belt and Roads Initiative.
Liam Fox, British Secretary of Commerce, will be present, while France will send Didier Guillaume, his Minister of Agriculture, and Germany, Christian Hirte, a trade manager.
European countries call for further easing requirements for joint ventures with Chinese groups and pressure for technology transfer, after Beijing eased restrictions on auto and finance sectors of the past year.
Some 3,000 companies from 130 different countries, including General Motors, Microsoft, Walmart, Tesla, Facebook and Google, will be showcasing their products at the exhibition's 270,000 sqm site. But many multinationals send low level executives.
Some companies were dissuaded by a asking price of 20,000 rand ($ 2,900) for a ticket to follow Mr. Xi's opening speech and nearly 16,000 rand to attend sessions of $ 10,000. a professional forum to be held in parallel with the event. Representatives from China will attend the latter. They will present panels with Bill Gates and Alibaba 's founder, Jack Ma, but will offer few guarantees of access to senior officials.
The event also comes up against a Bloomberg forum in Singapore that will feature executives from companies such as Microsoft, Hyundai and SoftBank. This forum, originally planned for Beijing, has been moved due to trade tensions.
The setting up of exhibition stands during the Shanghai event proved difficult as exhibitors faced obstacles in accessing the exhibition site. A Shanghai official asked exhibitors to install their displays several days in advance for security reasons, which added significantly to the cost.
Security was strengthened in Shanghai and local businesses were ordered to give three days of vacation to their staff, while hotels were asked to carry out renovations worth up to $ 2 million.
Beijing has lobbied companies to announce major orders from foreign groups as a "political task," according to official websites, with a group of Shanghai companies pledging 4 billion Rmb of transactions and the city of Jinhua, in the east of the country, pledging orders in the amount of RB 1 billion.
But leaders say business events are becoming less and less relevant to multinationals.
"It's a bit old-fashioned to have a big sales show. Companies do business every day in China, "said James McGregor, Chinese President of APCO Worldwide Consulting. "The real problem is not selling imports in China, it's access to the market. China knows that this is the true fundamental contradiction of this commercial battle. "
Additional reports by Wang Xueqiao and Lucy Hornby
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