Sharjah: Trade between the UAE and China reached $25 billion (Dh91.75 billion) in the first nine months of this year, a 36.6 per cent increase over the corresponding period last year.
"The volume of trade for this year will register a new record figure," Jiang Yaoping, Chinese Vice-Minister of Commerce, told Gulf News. after the opening of the 10th Chinese Commodities Fair yesterday.
Trade is expected to reach $30 billion by the end of this year, said Ahmad Al Midfa, Chairman of the Sharjah Chamber of Commerce and Industry (SCCI).
Last year, trade between China and the UAE totalled $28 billion but was impacted by the global economic crisis, Al Midfa said.
Yaoping said he was optimistic about the recovery of trade volumes next year.
"We are working on it and we are confident that trade volumes will be in good shape next year. There is a strong complementary relationship between the two countries and there's an opportunity for its growth," he said.
Strategic trade opportunities include tourism, halal food, financial services, real estate, construction and energy.
Asked about the impact on China's trade relations with the Middle East by the protests across the Arab world this year, Yaoping said: "Political stability is beneficial and important for economic co-operation and growth."
Lucrative market
The issue of whether Chinese exports may become unattractive when the government stops holding down the yuan's exchange rate to the dollar remains unclear.
"There will be clarifications from the Chinese government regarding this," Yaoping said.
Yaoping and Al Midfa inaugurated the 10th Chinese Commodities Fair at Sharjah's Expo Centre yesterday.
About 80 enterprises from 15 Chinese cities are represented at the four-day exhibition. This year the theme is "Chinese Cities" and the exhibition will feature Wuhan city with its local products, culture tourism and investment opportunities.
"The UAE has taken big steps to strengthen the relations with China and Sharjah had a big role in this area, with the directions of His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, because China is one of the big players in the global economy. Therefore, this exhibition contributes to the trade between us, especially among small and medium businesses, which are the backbone of the UAE's industrial sector," Al Midfa told the media.
Chinese food companies at the exhibition said the UAE was a lucrative market for Chinese food exports.
"It is a good market. I went to the supermarket to check fruit products and they sell well at a high price. It is cheaper from China and easy to ship," said Cai Xiao Peng, owner of Kingsperry, which sells jam, fruit sauce and dried fruits.
"We are planning to open a sales office here."
The UAE produces less than 15 per cent of its food due to lack of arable land and fresh water reserves thus making it dependent on imports.
"I am confident that due to the government and corporate co-operation between the two countries that economic and trade collaboration will witness better development," Yaoping said.
There are 3,000 Chinese companies in the UAE. Joint ventures between the UAE and China total about $12 billion.
In the last two years Chinese firms secured over $4.8 billion worth of contracts in the UAE, according to the Chinese Ministry of Commerce. The UAE is the largest Arab investor in China with more than 650 projects.
