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| Tuesday, 5 August 2003 |
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Improving China-Lanka trade links With a population exceeding one billion, China is the world's biggest single consumer market. Thanks to an effective reform program and an open door policy, it also has one of the fastest growing economies in the world, although the recent SARS outbreak compelled economists to revise their growth forecasts. China's entry to the World Trade Organisation has virtually led global players to fall over each other in order to gain access to the Chinese market and to set up investments in its special economic zones. On their part, the Chinese themselves are moving out and establishing businesses abroad. More Chinese are also travelling abroad for business and pleasure. All these are positive trends that augur well for countries doing business with China. Sri Lanka has maintained cordial cultural relations with China for centuries and formal diplomatic relations for several decades. It has remained one of our staunchest allies at bilateral level and also at international fora. It is one of our strongest trading partners and very recently, Chinese authorities added Sri Lanka to the list of approved destinations for group and individual travellers, giving a huge boost to our hospitality industry. Prime Minister Ranil Wickremesinghe's official visit to the People's Republic of China from August 9 to 13 will reinforce these age-old ties. A significant part of his visit will be devoted to promoting Sri Lanka as a prime South Asian business and investment destination among the Chinese business community. He will meet China's top business leaders at a special forum scheduled to be held on August 11. A Sri Lankan delegation representing leading business chambers and companies will be present on this occasion for one-on-one consultations with the Chinese business leaders. The Sri Lankan business representatives hope to further strengthen their business contacts with their Chinese counterparts while exploring new export/ import and investment opportunities. Our business community must seize this opportunity to attract more Chinese investments to Sri Lanka. It is no secret that the balance of trade between the two nations is tilted in favour of China, whose exports have flooded our local market, not to mention products bearing Japanese brand names which are manufactured in China. These goods are cheaper, though there is hardly any difference quality wise. This can be turned to our advantage, leading to a win-win situation for our importers as well as consumers as exemplified by Chinese goods like motorcycles which are much cheaper than the equivalent Japanese items. Sri Lankan companies too must explore the possibility of entering the Chinese market in a big way through exports, joint ventures and outright investments. China can be a new, untapped market for some of our non-traditional products. Forming joint ventures with Chinese enterprises will enable our companies to gain a foothold in one of the world's most lucrative markets and even sole investments must be considered where possible. The Prime Minister's visit will also give an opportunity for Sri Lanka to promote itself as a major tourism hotspot among Chinese travellers. We understand that several events have been organised during the Premier's visit to showcase Sri Lanka as a tourism destination. Even now, Chinese visitors are trickling into Colombo, but a major promotional campaign will encourage more of them to come here. Better air links, including direct flights between Beijing/Shanghai and Colombo will be welcomed by Chinese and Sri Lankan travellers who now have to transit through Hong Kong, Singapore or Bangkok. Chinese and Sri Lankan authorities must explore the possibility of signing a free trade pact along the lines of Sri Lanka's agreement with India. Most developed nations have granted Most Favoured Nation status to China to strengthen trade links. Such an arrangement will be mutually beneficial. China is one partner we cannot do without in the new world trade order and the Prime Minister's forthcoming visit will hopefully lay a firm foundation for even closer business links between the two nations. |
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