Zero Tariff Helps Chinese Building Material Industry Seize the Southeast Asian Market(2009/9/15)

At present, the amount of imported demand in building materials in the ASEAN countries has been more than 10 billion US dollars.

In recent years, Thailand, Laos, Vietnam and other ASEAN countries have a new round of civil housing boom in infrastructure construction; and their building materials are mostly imported. With the signature of China - ASEAN Free Trade Area "investment agreement", from January 1st next year, there are about 7000 kinds of products between China and ASEAN enjoying zero tariff treatment. After the implementation of zero-tariff, Chinese enterprises can not only avoid a lot of trade barriers, but also save the cost of exports to ASEAN countries; it is a rare opportunity for Chinese enterprises to establish factories and the establishment of commodity distribution centers.

In the next few years, the ASEAN region will set a rare scale in the rehabilitation of infrastructure, the hotel industry, construction and reconstruction of civilian housing. The hit of tropical storms in Myanmar last year needs nearly billions of dollars funds in reconstruction; in addition, the Trans-Asian Railway line which has started to build part of the line is also starting fund-raising. These also bring immense business opportunities to the building materials suppliers.

In recent years, as China - ASEAN Free Trade Area construction was speeded up, the mutual investment has expanded. As of the end of 2008, the actual investment ASEAN countries made in China is 52 billion U.S. dollars, accounting for 6 percent of foreign capital in China; China's direct investment in ASEAN reached 2.18 billion U.S. dollars, compared with the previous year by growth of 1.25 times. With the subscription and implementation of "investment agreement" , economic trade relationship between China and ASEAN will surely enter a new stage of development.

(by China Leiyuan, 2009/9/15)