of the independent FEBRUARY 2012 SERVING THE INDEPENDENT FREIGHT FORWARDING COMMUNITY No.006 China creates ‘new vision’ for worldwide trade THE Chinese government has longrecognised the importance of the service sector to its burgeoning economy and the vital role logistics plays in driving growth and increased prosperity. Now the government is pushing for a significant advance in the service sector and particularly the logistics industry and is launching new initiatives to drive increased efficiency through domestic and international partnerships. A key plank in this strategy is creating a major platform for Chinese and international service sector participants. In May, the Chinese Ministry of Commerce and the People’s Government of Beijing Municipality will host the first edition of a major event, called China Beijing International Fair for Trade in Services (CIFTIS), which pulls together the 12 major service sector industries in one location. To be held at the China National Convention Center in Beijing (below), the scale and ambition of the event offers unparalleled scope for establishing new business for both Chinese and international companies. With the determination and drive of the Chinese government behind the event, the prospects for independent forwarding companies from around the world attending the event are unbounded. Delegates will benefit from the proven One-on-One meeting format, opening up a whole range of new opportunities for their companies. Voice of the Independent was invited to meet high-ranking Ministry of Commerce and Beijing Government officials to discover more about CIFTIS and the prospects for the Chinese logistic sector. Lu Jijian, Deputy Director of the Department of Trade in Services and Commercial Services of the Ministry of Commerce, said that CIFTIS is backed by the Chinese State Council and will be the most comprehensive services trading platform in China, and probably the world. To be held from 28 May1 June 2012, the event will become an annual fixture for all companies and officials involved in trading in services with China. “All 12 service sector categories as outlined by the WTO will be present and it is on track to become the only national, international and comprehensive business transaction platform for trade in services in the world. It will serve as a high-level negotiation table, a vehicle for the announcement of policies on international trade and a bridge linking companies from all over the world to do business and create partnerships.” Lu recognises the importance of CIFTIS to ensuring international trade and particularly logistics becomes more efficient. “Total trade volume in the service sector in China is 400 billion US dollars, but the Chinese service sector is still in a position of deficit. The deficits from logistics and transportation are the biggest contributor and we recognise that. This means that there is great potential to improve our efficiency in logistics services. There is a unique opportunity here for Chinese and international logistics companies to come together and create new efficient trade flows and partnerships.” Recognising that China’s transportation costs are higher than in the western world, the Ministry of Commerce has ensured that all the major state companies involved in logistics will be attending, alongside many manufacturers and shippers. In addition, 16 state-level agencies will ensure there is widespread participation from all areas of China. Alongside this, China International Freight Forwarders Association (CIFA) will be attracting hundreds of independent Chinese logistic companies to CIFTIS. International participation is already gathering momentum, with high-level delegations from 27 countries already attending, alongside many Fortune 500 companies. The world’s largest freight forwarder network, WCA Family of Logistic Networks is also supporting the event and hundreds of international freight forwarding and logistic companies will be in attendance. “CIFTIS will act as an international hub for logistics in China. If your company conducts any export or import business with China or wants to establish logistic links both externally and internally, CIFTIS will provide the answers, connections and business Continued on page 2 2 China report China seeks to improve the efficiency of its logistics 4 Helping shippers plan How to prevent ‘nasty surprises’ for your clients 6 Areas of opportunity Africa and the Middle East are key growth markets 8 Making the most of IT New systems can drive much greater efficiencies