Chinas Trade with the EU and Sweden: Contemporary Issues in Trade, Logistics and Transport

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Chinas Trade with the EU and Sweden
Contemporary Issues in Trade, Logistics and
Transport
Ph.D. He Mingke(hemingke_at_ht.rol.cn.net) Professor,
Dean, Business School Beijing Technology and
Business University, China Vice President of
China Federation of Logistics and
Purchasing Visiting Professor of Gothenburg
University, Sweden
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Welcome Professor Arne Jensen, Mikael von Otter,
Lars Anell, Maria Leffler, Cheng Youcai, the
Counselor of China in Gothenburg and other
distinguished guests and friends!
Välkommen!
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Contents
Brief Introduction of Chinas Economy
Brief introduction of Chinas Economy
Chinas Trade Relationships with EU and Sweden
Logistics and Transport Bottlenecks in the Trade
TradEasy and the Solution
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Brief introduction of China
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Chinas Economic Development 2003
GDP 6th in the world US 1423 billion AJGBFC Grow
th 1978-2003 ? 9.4 GDP per capita us1095
Trade 4th in the world US851.2 billion AGJCF
Fundamental change Planned ? Market Marketization
69 99 supplygt demand
FDI 1st in D.C. 2nd in the world (1st USA) US
53.5 billion gtUSA first time 2002
FER 2nd in the world US403.3 billion, 40?2002
1st Jap. Private Deposits US1351.5 billion
China is 1.developing 2.emerging market 3.open,
interdependent 4.friendly, reliable
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Chinas GDP, growth rate and GDP per capita in
1978-2003
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Chinas GDP in 1978-2003
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Chinas GDP Growth Rate in 1978-2003
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Chinas GDP Per Capita in 1978-2003
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Huge Domestic Investment Demand
Source Estimated by the author according to data
collected from official source or professionals
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Big Room for Chinas Growth
Norway, Japan, USA US 40,000 Singapore US
30,000 Swedens GDP us 239 billion, GDP per
capital us26,970
Big room for the growth of GDP and GDP per
capita!
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Favorable Development Conditions of China

• Strong driving forces for continuous export
  increase
• Vigorous infrastructure investment demand
• Gargantuan consuming demand
• Open policy, big FER and FDI
• WTO Entry and Market economy
• Stable society and More democratic politics
• 2008 Olympic games in Beijing
• 2010 World Exposition in Shanghai

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Realize Chinas consumer market

• With the development of Chinas market, there are
  requirement for almost any EU product, FMCG,
  industrial products, hi-tech products, products
  for environment improvement,
• Over 1 billion people can afford packaged
  consumer products, making China the largest
  market for beer, biscuits, food, beverages,
  personal care,
• 250 cities have sufficient average annual income
  levels to support consumerism
• More than 5 cities populations over 10 million,
  more than 30 cities populations over 5 million,
  more than 160 cities populations over 1 million
• 20 cities have the similar absolute spending
  power as in developed countries

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Why Global Manufacturing and Purchasing Sites in
China
China is the only biggest potential market opened
at the latest in the world
Chinas economy will develop at high speed in
next 20 years
Labor cost is much low because of large supply,
but the quality of the human resources is very
high
The most attractive policies
Cluster of Industries in three Zones Pearl River
Delta, Yangtze Rive Delta and Bohai Sea Belt
Foreign Comparative Advantages
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Challenges for Chinas economic growth
Incomplete Transition of Systems
Weak Economic Development Foundation
Costal/Inland Regional difference
Imbalanced Economic Development
Agricultural/Manufacturing/Service Industrial
difference
City/countryside difference
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Imbalanced economic Development -GDP, GDP per
capita and GDP growth rate in 2002 by region
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Contents
Brief introduction of Chinas Economy
Chinas Trade Relationships with EU and Sweden
Chinas Trade Relationships with EU and Sweden
Logistics and Transport Bottlenecks in the Trade
TradEasy and the Solution
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China-EU Trade Relations

• Romano Prodi, President of the European
  Commission, May 4, 2004
• But especially in recent years, the relationship
  between the Union and China has expanded far
  beyond trade and other economic issues.
• Last year the Union issued its Policy Paper on
  China. We called our relationship "A Maturing
  Partnership". This maturing, increasingly
  strategic partnership is developing with each
  passing day.
• if it is not marriage, it is at least a very
  serious engagement.

• Romano Prodi, President of the European
  Commission
• There is no question that business and business
  relations are an extremely important part of
  EU-China relations. Two-way trade between the
  European Union and China grew strongly again last
  year and will grow even more this year.
• We have a very important, ever-growing
  relationship when it comes to trade and
  investment. And the presence of such a large
  number of important business people today
  testifies to that.
• But especially in recent years, the relationship
  between the Union and China has expanded far
  beyond trade and other economic issues.
• Last year the Union issued its Policy Paper on
  China. We called our relationship "A Maturing
  Partnership". This maturing, increasingly
  strategic partnership is developing with each
  passing day.
• And today, on the occasion of this visit, it will
  provide yet further fruit -- as we sign another
  agreement and four other documents that further
  cement our partnership.
• Most of you will know the weekly magazine The Far
  Eastern Economic Review. Its issue of 12 February
  this year had a cover story under the title
  "China's love affair with Europe". And the
  sub-title read "It's More Than Love".
• So first, trade and economics, and now, "love"
  too -- or "even more than love". That sounds
  pretty serious, and if it is not marriage, it is
  at least a very serious engagement.
• This engagement is being consolidated constantly.
  Today we welcome Chinese Prime Minister Wen -- on
  his first ever visit to the headquarters of the
  European Union.

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China-EU Trade Relations

• China-Europe economic cooperation is
  win-win-Mr. Lamy, EU Trade Commissioner, April
  29, 2004
• China-Europe trade US125.22 billion in 2003,
  over US150 billion in 2004, 2003-2004 annual
  growth rate over 30
• China and EU are 2nd biggest trading partners
  mutually in 2003, the 1st in 2004.
• Supported by mutual political commitments, and
  friendly, regularly negotiation and dialogue
  systems and broad market demand
• Visiting and doing business with EU with 25
  members are the dreams of Chinese citizens and
  companies, this is a highly attractive and
  magnificent land!

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Chinas Trade with Europe and Sweden
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Chinas Trade with Europe and Sweden
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Chinas Trade with EU and Sweden
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Chinas Trade with EU and Sweden
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Contents
Brief introduction of Chinas Economy
Chinas Trade Relationships with EU and Sweden
Constraints for the Trade in Logistics and
Transport
Constraints for the Trade in Logistics and
Transport
TradEasy and the Solution
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Prospect of China logistics industry(1)

• Implementation of logistics plans by central and
  local governments.
• Multinational companies quicken their steps to
  place their DC.
• Traditional transport and warehousing companies
  will transfer to modern logistics companies.
• Manufacturers and distributors will discharge
  more of their logistics demands to 3PLs.
• Deregulations in entrance and shift.

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Prospect of China logistics industry(2)

• IT and other high technology in logistics are
  paid more attention than ever. IT solutions,
  digital logistics products will be popular.
• Distribution for chain operations, e-commerce,
  direct selling, mailing order and other forms of
  selling will be more and more important.
• Logistics infrastructure will be rather perfect
  in a short run.
• Logistics consultation, education, training and
  other value added services will be asset for
  operators.
• Logistics industry will be more open after WTO
  entry.

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Future Improvement for Chinas Logistics and
Transport
open and integrate logistics market
Deregulation of government
Simplify customs procedure
Implement international logistics standards
Improve the integration of logistics
infrastructure
Increase logistics information transparency
Promote the development of small logistics
companies
Improve logistics service and efficiency, reduce
cost
Promote 3PL
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Constraints for EU Trade in Transport and
Logistics

• To EU Companies
• Customs Procedures
• Logistics Information
• Logistics Standards
• Integrators and Operators
• Logistics Network
• Logistics Service
• Logistics Cost
• Local Protectionism
• Law and Relationship

• To Chinese Companies
• Customs Procedures
• Logistics Information
• Market Competition
• Operation Cost
• Standards
• Law and Culture
• Market Economy Status
• Protectionism
• Discrimination

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Contents
Brief introduction of Chinas Economy
Chinas Trade Relationships with EU and Sweden
Constraints for the Trade in Logistics and
Transport
TradEasy and the Solution
TradEasy and the Solution
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10 Proposals for EU Trade in Transport and
Logistics
1.Establish a logistics group in EU-China trade
coordination committee 2.EU and China joint
research on EU-China supply chain problems and
countermeasures in trade, transport and
logistics. TradEasy 3.Help companies in two ends
to establish a fully integrated China-EU supply
chain for major products 4.Establish China-EU
trade and logistics databases 5.Unify China-EU
customs procedures 6.Develop China-EU land
transport network 7.Establish China-EU logistics
information platform 8.China to open logistics
market to EU 3PLs 9.EU helps China to perfect its
transport and logistics infrastructure
network 10.Promote EU standards in China
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Questions, Please!
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Tourist Resorts of Beijing China
The Temple of Heaven Beijing
The Summer Palace Beijing
The Ruins of Yuanmingyuan Park Beijing
World Trade Centre Beijing
The Forbidden City Beijing
Night View of The Forbidden City Beijing
Celebration at the Night of Winning of 2008
Olympic Games Host Beijing
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Tourist Resorts of China
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Tourist Resorts of China
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? ? ??????Speaker Professor and Dr. He
Mingke?????????????Organization Business
School, Beijing Technology and Business
University????hemingke_at_ht.rol.cn.netEmail
hemingke_at_ht.rol.cn.net????13501207866Mobile
00-86-13501207866?????????????33?Address
No.33, Fucheng Road, Beijing????100037Postal
Code 100037
??! Thank you!