BEIJING - Not only is it the world's largest exporter, but China, the most populous nation and the second-largest economy, is creating a market that will whet the appetites of exporters overseas.
"I had never done business and sold anything here in China before, but I think the time has come for me to make an entry into the wonderful land," Robert Schenkel, chief executive office of Stand Max Trading Ltd, told China Daily during the recent 108th China Import and Export Fair (Canton Fair) held in Guangzhou.
Stand Trading is a Netherlands-based lamp maker and exporter with annual sales of 5 million euros ($6.89 million). Its products sell in Europe and the United States.
While yuan revaluation is being undertaken on a gradual basis, the nation's consumer market is growing rapidly and the government shows its strong commitment to boosting imports, overseas manufacturers and exporters are pushing their way into China seeking opportunities.
"The appreciated yuan is making my goods cheaper. Chinese consumers' demand for foreign goods is also increasing. When people get richer, they want things that are exotic," Schenkel said.
He added that he has no specific goal for orders, and his major task at this time is to learn more about China and its consumers.
"Undoubtedly, China will become a most important market for us," he said.
Schenkel is only one of the foreign newcomers at the Canton Fair to have expressed a strong desire to make inroads into the Chinese market. They almost unanimously believe that China's imports will grow at a fast pace and now is "good timing" to attempt entry to the market.
Currency revaluation is a major reason for this. After a two-year peg to the US dollar from July 2008, China initiated foreign exchange reform in June this year.
During the past five months, the yuan has risen by more than 2 percent against the dollar.
While the government vows to further push forward reform, economists insist yuan appreciation will continue, although it will probably be slow.
"We were not as competitive as Chinese products in terms of price, although our products are superior in quality, but the rising yuan is now giving us an edge," said Yasuyuki Mitake, director-general of Yamaki Bussan Co Ltd, a Japanese food trader.
Mitake added that while the number of orders is limited so far, many Chinese buyers are showing huge interest in negotiating with him.
Real estate sector shows signs of cooling"The number of foreign companies applying to attend the fair surged this year, especially those from sectors such as medical equipment and food," said Liu Jianjun, spokesman of the fair.
While sellers from Europe and the US are more cautious on deciding whether to join the fair, vendors from emerging markets such as South America and India are growing in double-digit numbers.
Anil Tiwari, branch manager with Tradeindia.com, an online trade matchmaker, said his company is "very actively" looking for importers in China, as manufacturers in India are "highly enthusiastic" about exploring the Chinese market.
"The Chinese government is tilting its policies to boost imports, which presents foreign manufacturers, including India's, with a great opportunity. India's rubber products and clothing have great potential in China," said Tiwari. "In fact, China is the only place that everybody is looking at."
Gao Changxin contributed to this story.
