Visitors check out imported products at a trade expo in Langfang, Hebei province, in June. WANG MIN/XINHUA
Beijing: When Loctek Ergonomic Technology Corp, a Ningbo, Zhejiang province-based office products manufacturer, launched its first self-owned container vessel with a capacity of 1,800 twenty-foot equivalent units last April, its goal was to reduce shipping costs and meet schedules on time.
Few could anticipate that this move would turn trade in services-related business into another major revenue driver for the company this year.
“Pushed by our clients’ demand for shipping services and soaring goods orders generated by cross-border eCommerce transitions, space on our container ships has always been fully booked and we have put two new overseas warehouses into operation in the United States and Germany in early July,” said Xiang Lehong, chairman of Loctek Ergonomic.
“Buying the container vessel has helped more Chinese exporters ship their products abroad,” said Xiang, adding that the company today is also providing overseas warehousing services to more than 700 exporters across various industries.
Loctek Ergonomic’s initiative is just an example to highlight how capable Chinese manufacturers transform their businesses to the next level and seek more growth points in trade in services.
In contrast to goods trade, trade in services refers to the sale and delivery of intangible services like transportation, tourism, telecommunications, warehousing, advertising, computing and accounting.
Despite facing rising trade protectionism and economic uncertainty, the growth of China’s trade in services will maintain an upward trajectory this year, with huge potential in foreign trade, consumption, logistics and tourism, experts and foreign business executives said.
Attracted by China’s growing foreign trade volume, US-based logistics provider FedEx launched two new flights to the United States from Qingdao, Shandong province, and Xiamen, Fujian province in June.
The company also plans to establish international gateway facilities at each location to enhance operational and clearance efficiency, in keeping with the increased business and trade demands of local customers.
“The launch of these two new cargo flights is a proactive move to meet the growing demand of China’s foreign trade and deepen cooperation with the local market,” said Koh Poh-Yian, vice-president for operations at FedEx China.
China’s trade in services totalled 3.02 trillion yuan in the first five months of this year, up 16% year-on-year, data from the Commerce Ministry showed.
In the meantime, the country’s imports and exports of travel services totaled 820 billion yuan, a jump of 48.4% on a yearly basis.
Upbeat about the Chinese market, Swiss hospitality management university EHL Hospitality Business School, started the seventh executive master of business administration in hospitality programme with China Europe International Business School in Shanghai in June. — China Daily/ANN
