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Fruit trade between China and ASEAN countries thrives

Fruit trade dynamics between China and the Association of Southeast Asian Nations (ASEAN) have showcased a robust performance, underscored by the flourishing trade relations. In Youyi township, Pingxiang, located in Guangxi Zhuang autonomous region of southern China, a notable influx of trucks laden with diverse fruit varieties is a common sight. Pingxiang, recognized as the premier port city facilitating fruit trade between China and ASEAN, reported a total of approximately 1.65 million tons of fruit traded in the initial half of the year, marking a 15.36 percent increase on a year-on-year basis.

The vibrant fruit trade is emblematic of the strengthened trade cooperation fostered by the annual China-ASEAN Expo, the comprehensive enactment of the Regional Comprehensive Economic Partnership (RCEP), and the deepening Belt and Road initiatives. The fruit trade has emerged as a prominent aspect of the agricultural product exchange between the two regions. China, being the largest export market for Vietnamese agricultural produce, has a particular preference for Vietnamese durian and dragon fruit. Additionally, China serves as a key destination for Thai fruits, with sixteen land ports designated for handling the fruit trade.

E-commerce platforms specializing in fresh food have established procurement bases in Vietnam and Thailand, offering new avenues for local agricultural products to penetrate the Chinese market. A reported 48.6 percent surge in sales of Thai durian was observed on Chinese e-commerce platforms in the first seven months of the year. The approval of new fruit varieties from ASEAN countries for the Chinese market has led to an increased preference among Chinese consumers for ASEAN fruits, available at more competitive prices.

Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, attributed the thriving fruit trade to several factors. The full implementation of RCEP has significantly reduced trade costs and enhanced policies like rapid inspection and quarantine, facilitating the movement of fruits and other agricultural products. The booming trade is also a result of improved infrastructure connectivity, an upgraded cross-border logistics system, and the diverse fruit options from ASEAN countries appealing to Chinese consumers.

Since RCEP's implementation, agricultural product trade among member countries has intensified. Following the customs facilitation provided by RCEP, China imported fresh durians worth 46.61 billion yuan from member countries such as Thailand and Vietnam in the first 11 months of 2023, a substantial increase from the period before the agreement's effect. The development of major projects like the New International Land-Sea Trade Corridor and the China-Laos Railway has bolstered cold chain and refrigeration facilities, easing the entry of ASEAN fruits into the Chinese market. The China-Laos Railway, a pivotal logistics channel, has transported over 43 million tons of goods, including cold chain carriages of Thai durians and bananas.

Industry insiders highlight the complementary nature of fruit production between China and ASEAN countries, with China specializing in temperate fruits and ASEAN countries in tropical varieties. This trade synergy optimizes the fruit supply and distribution in the region. Vietnam has emerged as the leading supplier of durians and fresh bananas to China, with the Chinese market significantly boosting exports of Vietnamese fruits and vegetables. Monsit Paisarnthanawat, the governor of Thailand's Chanthaburi Province, noted the fruit industry's role in job creation and income enhancement for farmers, expressing eagerness for deeper cooperation with the Chinese market. China is actively expanding market access, enhancing customs clearance facilitation, and establishing trading platforms to further stimulate fruit trade growth with ASEAN.

Gao anticipates that under frameworks like RCEP, China and ASEAN will continue to refine cooperation mechanisms and platforms, fostering better development prospects for ASEAN fruits in the Chinese market.

Source: People's Daily Online

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