by Chen Jiaqi, Wang Xiaotong, Shi Yu

SHANGHAI, Nov. 7 (China Economic Net) - "This expo is really unique." Pakistani Ambassador to China Moin ul Haque told China Economic Net at the 4th China International Import Expo. He said most countries in the world are trying to export their products, while China's CIIE is import-oriented, and Pakistan has benefited a lot from the expo in the past four years.

Pakistani Ambassador to China Moin ul Haque visits the 4th CIIE.

What are the unique advantages of CIIE, and what benefits does it bring to Pakistan?

Exports to China grew by 77% over the first three quarters

According to the latest data from the General Administration of Customs of China (GACC), the total value of China's imports from Pakistan was USD 2.5 billion from January to September, a year-on-year increase of 77%.

Four years ago, Pakistan, as one of the guest countries of the first CIIE, made its debut at the expo with its export-oriented products such as jeans, home textiles, football, and rice; In the second CIIE, Pakistan’s fur, carpet, brass crafts, jade and healthcare products were well-received by Chinese consumers, in particular, their demands for Pakistan’s brass crafts exceeded supply at the time. While in the third CIIE, high-end and value-added products such as emeralds, gemstones and ores were displayed in Pakistani pavilion, and exhibitors for trade in services appeared for the first time. The categories and forms of Pakistani exhibits became more diversified.

This year, as an old friend of CIIE, Pakistan has brought pecans, pine nuts and other nut products for the first time in addition to carpet, pink salt and other competitive products. The number of exhibitors for trade in services from Pakistan has also increased this time. In the past four years, through the CIIE, Pakistan has brought more and more good products to Chinese consumers, and it has witnessed China's continuous expansion of opening up and actively expanding imports.

What benefits can these Pakistani exhibitors get from CIIE?

Sales increased by 40-50% since last CIIE

"After participating in the CIIE last year, our store sales in Shanghai increased by 40-50%," told Aqeel Ahmed Chaudhry, the founder of Winza brand from Pakistan who has participated in the CIIE for two consecutive years. Why Pakistan gemstones can maintain high growth in the Chinese market? What is his secret?

Aqeel told CEN reporter that the biggest contributor to sales growth was rubies, followed by sapphires, diamonds and emeralds. "First of all, we consider women over 30 years old as the main consumer group. They usually choose 1-3 grams of sapphires or rubies. Second, many European countries use sapphire as a token of engagement. We have also introduced this concept to China, making sapphires as a wedding series, which are widely recognized by Chinese consumers."

Photo shows Aqeel Ahmed Chaudhry, the founder of Winza brand, in an interview with China Economic Net. (Photo by Chen Jiaqi/China Economic Net)

According to GACC, from January to September 2021, Pakistan’s export volume of unprocessed, simply sawed or rough-shaped precious or semi-precious stones (HS Code: 71031000) to China was 9.6 times that of the same period in 2020. In addition to the increase of raw stones export, processed rubies, sapphires, emeralds, tourmalines and other unlisted precious or semi-precious stones have achieved a zero breakthrough compared with last year, with a total of nearly 500,000 carats exported to China [Note: processed ruby, sapphire and emerald (HS Code: 71039100); processed tourmaline (HS Code: 71039930); unlisted processed precious or semi-precious stones (HS Code: 71039990)]. Obviously, China's demand for Pakistani precious and semi-precious stones has increased.

Photo shows emerald product of Winza brand exhibited at the CIIE. (Photo by Chen Jiaqi/China Economic Net)

Aqeel Ahmed Chaudhry revealed that he has signed a contract with a company in Liaoning at the CIIE this year. They are likely to establish a branch in Liaoning in addition to Shanghai. "Currently colored gemstones can be found in some international brand stores in China. It is expected that they will be seen in traditional brand stores. Through greater popularity, consumer recognition of gemstones can be improved."

Zero tariffs for exports to China, advantages over those of other countries

Photo shows Habib ur Rehman, head of Pak Presion, a carpet enterprise from Pakistan, displays Pakistani carpets. (Photo by Wang Xiaotong/China Economic Net)

"I can assure you that the Pakistani carpet is cost-effective." Although a newcomer to the CIIE, Habib ur Rehman, head of Pak Presion, a carpet enterprise from Pakistan, told CEN reporter that his family members have engaged in making carpets. He has been exporting carpets to China for nearly 20 years, witnessing the improvement of business environment and import policy since China's accession to the WTO 20 years ago. He has benefitted from the CIIE and the FTA agreement signed between China and Pakistan. "We used to pay 17% import tariff and 14% VAT for exporting carpets to China, but now the tariff is zero and only 13% VAT is payable. For exports especially like Pakistani carpets, compared with those from other countries that still have to pay taxes, our advantage is obvious."

347 tons of nuts exported to China, try to register rose water

According to the latest data released by the GACC, from January to September 2021, Pakistan exported more than 347 tons of unlisted fresh or dried nuts (HS Code: 71039930), over 44 times that of the same period last year. Pakistani enterprises are ready to tap into the business opportunities at the CIIE.

"We have been exporting products from Pakistan to China for nearly 20 years and have tried a variety of products. This year we mainly promote Himalayan salt lamp. Next year, we intend to bring Pakistan's mango, orange, almond and other agricultural products to the CIIE, " said Mian Muhammad Zubair, head of Himalayan salt lamp exhibition area from Pak Presion, in an interview with CEN.

Hakeem Sheikh Usman, CEO of Marhaba, Pakistan, participated in the second CIIE, but failed to be an exhibitor this time. He said that his previous participation in CIIE had achieved good results, enabling them to directly get the feedback of user preference and demand. "At present, two products - currant oil and onion seed oil - have been certified in China. We are trying to register rose water in China as the Chinese also like rose water. In the future, we want to establish joint ventures with Tmall and JD to arrange online business."

Pakistan's exports to China likely to be doubled in the next 3 to 5 years

As this year marks the 20th anniversary of China's accession to the WTO, China will firmly safeguard true multilateralism, share market opportunities with the rest of the world, promote high-standard opening up, and firmly uphold the common interests of the world, said Xi Jinping in his keynote speech at the opening ceremony of the fourth CIIE. Regarding this, Moin ul Haque, Pakistani ambassador to China said China is contributing a lot to multilateral negotiations and Pakistan is very happy to be an important partner of China in promoting global cooperation in different areas. “We are going to have an unprecedented new record of the volume of bilateral trade. In the next 3 to 5 years, Pakistan's exports to China will be doubled”, he added.

The article is translated by Liao Yifan and Fu Bo.