China-UAE trade poised to grow by 40%

Abu Dhabi: China's trade with the UAE which crossed $10 billion last year is poised to grow 30-40 per cent in the short term on the back of the two booming economies and the likely sealing of a free trade agreement, top Chinese government officials said.

They said China's trade with the GCC peaked at $35 billion last year with Saudi Arabia emerging as the largest trading partner.

"In 2005, trade between China and the UAE was $10.7 billion, making it the second biggest trading partner of China in the Gulf after Saudi Arabia whose trade touched $16 billion," said Cao Jiachang, representing the Department of West Asian and African Affairs in China's Ministry of Commerce.

"Our trade with the UAE grew by 32 per cent in 2005 over 2004 and due to the robust economic development in both countries in recent years we expect to maintain 30-40 per cent growth in the coming years," he told reporters late Wednesday.

Cao, who is leading a delegation to the UAE and some GCC countries to promote the upcoming Canton Fair, said that of China's $8.7 billion exports to the UAE, a large part is re-exported to neighbouring countries.

"But we think Chinese exports and businesses have a greater potential in the UAE once the FTA is signed. The governments of both countries hope to enter into talks this year."

Jia Chunhai, the embassy's Economic and Commercial Counsellor, said Chinese products are finding favour in the UAE market and the China Town in Dubai and the Chinese Exhibition Centre, Sharjah is helping market the products.

"Also, there are about 1,000 Chinese companies in the UAE and cooperation between the two countries can further improve. We forsee a bright future once the FTA is signed."

The Canton Fair or Chinese Export Commodities Fair held every year in April and October is Asia's largest fair with a turnover of $60 billion, said Xu Bing, Deputy Secretary General of the Canton Fair.

"Nearly 6,000 businessmen from the UAE visited the fairs last year and gained businesses worth $1.35 billion. The fair has played a very important role in expanding the trade between our two countries."

A large number of businessmen have expressed interest in the fair and the numbers would be higher from the UAE and the region, he added.