The trade ‘on line’, the other key route to reach China

Ecuadornews:

In the commercial relationship with China, Ecuador still has pending issues, such assigning a trade agreement or obtaining certain phytosanitary permits that allo wit to enter its products to that market; but while waiting, the country does not want to rest on its laurels and therefore tries to adapt its offer to thenew forms of demand of the Asian giant. One of them, the increasing preference of purchase through digital platforms.

 That,explains José Antonio Hidalgo, president of the Ecuadorian-Chinese Chamber of Commerce, also opens an opportunity to arrive to that nation that, due to it saccelerated development, generates expectations for trade. He cites China Internet Watch report, which states that in that country, only in the last year, the consumption of electronic commerce grew by 23.8%, but also the studies that talk about how the demand for products will continue to grow in recent years ,this due to an increase in its middle class population and its purchasing power.

 And tobe able to reach that potential market, the country must start promoting itselfdigitally. “There is not as much presence in the e-Commerce part of companies that are directly entering this market, they are always the same distributors of shrimp and bananas, so we must start to see non-traditional products to start positioning them,” he explains.

 addition to manufactured products, he explains, there is an enormous opportunity to sell primary products that have an added value. “We have the case of one of our affiliates who wants to position noni juice, which sells very well in the Chinese market. In fruits, there as a gift, bananas, grapes,cherries are sold very well, despite having a high loss because they are in perishable products; however, they are products that are also being demandedvia platforms “.

 seeing this scenario, the Chamber has reviewed options to boost the country’sparticipation in this market. It will start doing it next December 5, inGuayaquil, with the inauguration of the I International Forum of E-commerce with China. The ‘E-China Day’ will be aimed at producers, Ecuadorian merchants who seek to do business in that market, with the use of different applicationsand technological tools. During the forum, attendees can listen to the representatives of App In China, Jumore and Ibillionaire, platforms that willallow local entrepreneurs to introduce their offer in that market.

Thinking about opening new sales alternatives is also thinking about how the country can alleviate the high trade deficit that historically has with the Asian giant. In that same period, Chinese sales in Ecuador reached $ 3,006 million, versus the $ 686 million that the country managed to introduce in that market, according to figures from the Central Bank of Ecuador.

But for the latter, Hidalgo says, it requires the willingness of the authorities to accelerate certain processes that allow free entry into that market. He speaks of the need, for example, to obtain phytosanitary permits to export grapes, avocados and animal health permits for dairy products. A subject that is expected to be analyzed during the official visit that President Lenín Moreno and his delegation prepare for the beginning of December.

Annually, China’s demand for dairy products increases by 9%, with consumption reaching 2.6 million tons. A deficit that Ecuador could begin to cover with part of the overproduction recorded in recent years (about 500,000 liters of milk).

Stage

What issold

Shrimp, bananas and mining products are the main Ecuadorian products that arrive in China. Until September, these three items reached $ 517 million.

What isbought

Ecuador imports mainly cell phones from China ($ 243 million until September of this year). It also demands manufactures, appliances and industrial machinery.

Permissions

Thecompanies exporting quinoa and pitahaya are waiting for the Asian country toapprove phytosanitary permits for the entry of these products into that market.(I)

Source: https://www.expreso.ec/economia/economia-comercio-china-internet-compras-HH2485944