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Yiwu commodity economy on the trackof recovery

Source: Southern Metropolitan Daily    Author:       Date: 2009-08-20

Yiwu, Zhejiang Province ,is the largest wholesale market of commodities in the world . " Yiwu Index ", which is calculated based on the dailytrade volume , has been called the " vane " and the " barometer " of global commodity trade . According to the statistics from Yiwu Bureau of Foreign Trade and Economic Cooperation ,the turnover of self-run import and export in Yiwu from Januaryto June , 2009 , has reached $1002 million , a rise of 7 . 11% over the same period of the previous year . In this figure , the export turnover has reached $906 million ,ariseof6.72% over the same period of the previous year . Judging from the statistics only, the foreign trade oriented Yiwu economy has alreadyreversed a downward trend .

Freight trucks queue up again Jennyis one of the 62,000 traders in Yiwu commodities market. She said that the orders she has received total around 10 million yuan, and that although it is still lower than the turnover in the same period of last year, the business situation is becoming better . According to the statistics from Yiwu International Logistics Center, the center has sealed 113,000 containers from March to June with a rise of 7 . 92% , compared with the same period last year . And the turnover of Yiwu commodities market in the first half of this year has a rise of 12 . 85% , compared with the same period last year . Besides ,the industrial added value of Yiwu also has a rise of 5.07%.

Foreign traders come back Osama is from Sudan , who has been doing hardware business in Yiwu for 3 years . After the breakout of economic crisis ,the demands of his clients, who are mainlyin Arabic countries such as Egypt and Saudi Arabia , began to decline . Osama believes "To preserve is victory ". He said both him and his clients cannot give up Yiwu market . " Yiwu has integrated all resources and channels of commodities . With its abundant commodities , easy way of customs declaration and convenient logistics ,Yiwu has a huge attraction to us ," he said.

The monthlyexport volume of Osama has been rising since April . At present , his export volume has reached $4 million ,nearlytwice as much as that of 2007 . The statistics from Yiwu Bureau of Foreign Trade and Economic Cooperation show that the resident foreign dealers were over 10 ,000 and offices of foreign firms were over 2 ,800 before the financial
crisis . More than 4 , 000 foreign dealers just like Osama still stayed in Yiwu at the end of last year , the worst time of the crisis . In the middle of February , 2009 , there
was news about a 40% increase of foreign visitors from Pudong frontier inspection department of Shanghai.

The analysis shows that most of the increased foreign visitors rushed to Yiwu. Demands go up Hundred-Yen Stores in Japan are the stores with all goods priced at 100 yen. With the impact of economic crisis , the market of deluxe goods shrinks in Japan. Hundred-Yen Stores enjoygreat popularityand the number of Hundred-Yen Stores exceeds 150, 000 with most of their commodities from Yiwu . " The largest and most rigid demands are cheap products with high qualitywhich are closely connected with people's dailylife . This is a trend in Japan as well as in Europe and US ," said Jia Junhua ,president assistant of China Commodities CityGroup Co ,Ltd . Zhang Handong , director of Zhejiang Provincial Research Center of International Economyand Trade, thought that after the long time financial crisis , commodities in foreign countries are out of stock, and that with the increase of foreign purchasers to China , the prices of dailynecessities at the medium and low levels start to rise.

 Advantages of Yiwu remain

Yiwu has abundant commodities. More than 300 , 000 in the catalog of 500 , 000 kinds of commodities provided bythe United Nation can be bought in Yiwu . The sample survey made this Mayin Yiwu market shows that 55 . 33% foreign traders in Yiwu are from the developing countries in theMiddleEastandAfrica.The traders from the Middle East are the largest in number , accounting for 46.95%. Ismael , a Spanish young man who has just registered his own companyin Yiwu recently ,is planning to build a cosmetic factoryin Yiwu Industrial Zone . Ismael did cosmetics business in Spain and mainly sold products to Europe . He said that nearlyall Europeans feel the chill of financial crisis . Besides , it's too expensive to do business in Spain and cutting down the cost is urgent at present , he added.



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