China looks for Ecuador to participate more in its market

Posted On 29 May 2019

Ecuadortimes:

Ecuador exported $ 12,839 million in non-oil products to the world in 2018, a growth of 5% ($ 630 million) compared to 2017, according to figures from the Central Bank of Ecuador (ECB).

And sales to China, according to the Ecuadorian Federation of Exporters (Fedexpor), contributed about 80% of that rise and placed the Asian giant as the fourth export destination behind the European Union, which grew 3%, United States (-1%) and Vietnam (-12%).

In 2018, Ecuador sold $ 1,020 million to China, 137% more than in 2017 ($ 430 million). Meanwhile, in 2019 the trend continues, in the first quarter they sold $ 462.6 million, $ 107.5 million more than in the same period of 2018.

China also handles figures. His consul general in Guayaquil, Zhang Tao, indicated that his country imported in 2018 77% more than in 2017; and said that the commercial exchange is around $ 5,711 million. “It is a very optimistic scenario for Ecuador, because before it complained enough about the trade deficit with China, this situation is changing,” said the diplomat.

Lenín Moreno highlights in China record of $ 17,000 million in investment

But the trade balance with China remained negative for Ecuador in 2018 with $ 3,072 million, since Ecuadorian imports from that country grew 18%.

China buys us shrimp (60%), bananas (12%), mining products (7%) and wood (4%). Ecuador brings cell phones (8%), metal manufactures (7%), appliances (6%), machinery (4%) and vehicles (4%). In this last segment, José Antonio Hidalgo, president of the Ecuadorian-Chinese Chamber of Commerce, said that Chinese car brands are the second most sold in the country. He indicated that in 2018, 137,000 vehicles were sold, the highest figure since 2012, and that year 15 new brands entered, 11 of Chinese origin. And that went from 7% to 15% of the market between 2007 and 2018.

The consul assured that China is open for Ecuador to reach more to its market; But he pointed out that businessmen should be “more aggressive” and suggested that they visit the fairs held in their country.

In this regard, Felipe Ribadeneira, president of Fedexpor, said that the projection of consumption growth in China exceeds 6% by 2020, which reflects the potential opportunity to insert Ecuador’s exportable offer, although he believes that it is necessary to specify a commercial instrument that allows to expand the market without tariff barriers.

Lenin Moreno traveled to China with a view to a commercial agreement

Zhang Tao agrees and indicated that China is willing to negotiate a treaty. “We advocate for the free market, we already have examples with other South American countries and now this ball is in the Ecuadorian part to make decisions”, he warned. (I)

Hoy🇨🇳se ha convertido en el tercer país manufacturero de automóviles a nivel mundial, en Ecuador han llegado hasta este año a ganar un 15% del mercado por sus buenos precios y buena tecnología. Esto nos motivó como @CamaraChinaEc a organizar #expochinamotor del 10-14 de Julio pic.twitter.com/YWsS7rh2Z4
— José Antonio Hidalgo (@antoniohidalgom) May 22, 2019