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March 9, 2018


Yes, you’ve probably heard from various different parties – even uncles who hang out at coffee shops every day talk about how China is now world’s leading nation. No doubt, China has gained limelight aplenty with its boosting economy and its rapid investments in our country Malaysia. Here are five reasons with strong justifications why you should trade with China, especially in export segment.

1. CHINA HAS BEEN MALAYSIA’S LARGEST TRADING PARTNER FOR 9 CONSECUTIVE YEARS

Since 2009, China has been in the records of being our largest trading partner and the numbers are still growing every year. In 2017, Malaysia’s trade with China increased by 20.6% to RM290.65 bil and exports alone constitute RM126.15 bil, giving to a rise of 28% while imports also grew by 15.5%.

These statistics alone proves that trades with China have a lot more potential to grow; its geographical size alone is a key point as to why we should export to China – its huge market is yet to be fully exploited.

2. MALAYSIA’S EXPORTS TO CHINA GOES ACROSS DIVERSE INDUSTRIES

Among the top products that we have been exporting to China include electrical and electronics, rubber products, petroleum products, chemicals and chemical products, liquefied natural gas (LNG), optical and scientific equipment, manufactures of metals and natural rubber.

In recent years, we have also seen growth of export in food and beverages, mostly by SMEs in Malaysia who have begun exploring opportunities in the land of China. So you should too!

3. FREE TRADE AGREEMENT BETWEEN ASEAN AND CHINA

Free trade agreements are mutually agreed terms between two or more countries to reduce or remove trade barriers for the betterment of economic integration. It provides plenty of benefits for traders, especially in tariffs, customs procedure, rules and restrictions, etc. For more information about FTA, read more here.

4. BELT & ROAD INITIATIVE (BRI)

Malaysia sit strategically right in the centre of the route between China and Europe and BRI opens up a lot more opportunities for us. To understand more of how you could reap benefits from this, read this article by The Sun.

5. CHINESE INVESTMENTS IN MALAYSIA

Like we mentioned, there’s an influx of Chinese investors in Malaysia with massive developments set out to happen in the next 5-10 years. For example, Jack Ma is setting up a logistics hub, DFTZ in Malaysia. This hub will comprise centralised customs clearance, warehousing, and fulfilment facilities for Malaysia and the region to deliver faster clearance for imports and exports.

Alibaba is also exploring e-payment and financing opportunities to facilitate business-to-business trades.

All of the above are strong reasons why China is the among the most potential countries for you to export to. However, with more foreign companies aiming at trading with China, customs regulations have also gotten more stringent in recent years, especially the licenses and permits required.

Have a ready product to export to China? Speak to us and we’ll assist you with all logistical matters and documentations needed.

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