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December 11, 2002: The Guangxi Song and Dance Troupe perform at Friendship Pass during festivities kicking off the Sino-vietnamese Frontier Pass (pingxiang) International Tourism Festival. by Chen Ruihua/Xinhua |
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The Guangxi Zhuang Autonomous region, occupying a total land area of 236,000 square kilometers, is a region of southwest China boasting a number of unique characteristics. Encompassing the geographical advantages of both land and sea borders, it serves both as the meeting point joining the east, center and west of the Chinese mainland, as well as acting as a pivot that links Southwest China and South China to the ASEAN market. Thus the region plays a vital strategic role for Chinese trade with the establishment of the ASEAN Free Trade Zone. In addition to the 25 border trading markets, there are 12 existing border trading ports; five of which are designated as Class 1 National Ports. One of these is the Pingxiang border trading post.
Border trade between Vietnam and Guangxi resumed in 1989, partly as a result of ten years of reforms and opening up policies by the Chinese government. The Pingxiang Border Economic Cooperation Zone was approved by the State Council as one of the important national border zones in 1992, following the strengthening of the Sino-Vietnam bilateral trade relationship and the simple enthusiasm of the area’s inhabitants to trade with one another. Accessible by highway or rail, China’s largest city bordering Vietnam, Pingxiang, is known as the “South Gate of China.” Recent figures show the city has witnessed more than 4 billion yuan (about $493 million) in trade per year with its neighbor, making up 10 percent of the Sino-Vietnamese total.
Earlier this year, I accompanied a group of Chinese and foreign journalists visiting Pingxiang to report on the apparently prosperous trading taking place as a result of China’s opening up of border trade ports across her vast borders.
The group arrived at the border by bus, and was lucky enough to be driven straight to a spot affording great views over the main goods transport crossing point. Standing overlooking the scene, one could clearly view the two symbols at the core of this border post: The Chinese and Vietnamese national flags on their respective sides. Stirring only occasionally to reveal their bright yellow star motifs in the light breeze; they stood high above the activity taking place below; serving as mute visual reminders of the invisible line of demarcation between the territories of one country and another. But here trading relations are good, and we could see traders constantly passing without bother across the border.
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Each day more than 200 trucks pass through Pingxiang Customs. by Liu Guangming/Xinhua |
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On the Vietnamese side in long and almost stationary lines, heavy-goods vehicles lined up on a dusty road. Smoke drifted up and dispersed in the breeze from inside several of the small dwellings lining the side of the dirt carriageway, where perhaps cheap eats for the road-weary lorry drivers were prepared. The Chinese trucks appeared empty, having unloaded their merchandize. Those arriving from Vietnam would be packed with goods, and their drivers patiently waited for clearance before setting off to their destinations.
The town itself was a busy mix of friendly people, including a fair number of Vietnamese, the majority of whom were selling fruit on the street.Shop-fronts displayed signs in Chinese as well as Vietnamese, with one particular advertisement causing some amusement: A billboard depicting a young Arnold Schwarzenegger complete with cheesy grin and displaying a muscle-flex. Arnie, it seems, was giving the thumbs-up to a particular Asian brand of DVD and VCD player. Certainly it was a strange sight to behold the now mighty governor of California in such a remote setting. In the stores beneath, people worked loading and unloading goods (often fruit) onto trucks, pull carts, and any other suitable means of transport to get their goods across the border to hawk or barter with traders on the other side.
For some time we simply took in the sights of street trading. Everywhere was the constant movement of commodities ranging from star fruit to stationary engines. After passing once more those smiling crowds of waving motorcycle taxi drivers pleasantly and politely touting for business (decked out as usual, with their thin plastic and mainly decorative “crash helmets”), we looked for suitable stores to fulfil one of our main purposes of investigating in more depth the experiences of the local merchants of Pingxiang.
Entering a store rather unadventurously named the “Vietnamese Products Trading Store,” we chatted with Wei Hongxin, the 38-year-old shop owner. His store was brimming with local specialties from both sides of the border; perfume and food products, and from behind his glass counter displaying all kinds of Jade handicrafts, Wei chain-smoked as he spoke candidly to us about his profession. He commented that many Chinese have travelled to Vietnam to open stores there-usually selling electrical appliances, car parts and chinaware to the Vietnamese, who have a huge demand for Chinese goods. Wei told us of the popular products on the current market. “In summer alcohol and green bean cakes sell well, and electrical products manufactured in China, for example DVD and VCD players, sell well all year round.” No doubt Arnie would be proud.
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At the Puzhai International Trade Fair in Pingxiang, A Vietnamese merchant prepares to haul his load of Chinese-made bowls back to his side of the border. by Gui Ying/CFP |
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In another store some way down the street, we met the smartly dressed and friendly 27-year-old Zeng Chuannan from north Guangxi, the owner of a Jade shop. He judged current border trade to be rather good, and cited the current flourishing watermelon trade as an example. Zeng’s main trade with the Vietnamese is chinaware, rosewood (esp. for furniture), earthenware and tableware such as cups and bowls. “I often see cars full of goods crossing into Vietnam, so trade seems quite good,” he explained. Zeng makes about 3,000 yuan per month, which he considers a medium income. His business also sees its high-points. “Every year during the May Day holiday, National Day and Chinese New Year periods business is especially good-people from Fujian and Zhejiang come in great numbers and purchase gifts such as the jadeware I have on sale here, and in summer Vietnamese-style thongs and hats are very popular with tourists.”
Despite the optimism of these traders, there has been a recent crackdown on illegal trade in the area. This tightening of regulations has been implemented for several worthy and unavoidable reasons: Alcohol, tobacco and prescription medicines are commodities always controlled by import restrictions-whether for reasons of tax or public safety. The trade in wild animals has contributed to the crackdown, and rightly so in the opinion of this reporter. With the popularity of endangered animals for medicinal or other purposes in Southeast Asia, the authorities must deal with, and be seen to be dealing with this illegal trade very firmly. Now, with the ever-present threat of bird-flu, these strict and transparent measures are simply a necessity. And it seems the Chinese authorities are handling the situation well. Merchants like Wei and Zeng realize that these restrictions have been imposed for the greater good, knowing a little less money in their pockets temporarily to be of less importance than public safety and the protection of endangered wildlife species. Trade in permitted goods is enough to sustain business, and will no doubt create healthy profits and a desirable market for the border businesses in the near future.
Whatever changes are taking place regarding regulations of trade or other matters, business still seemed brisk, as suggested by the queues of heavy goods vehicles at the crossing point. Trade relationships with Vietnam are deepening, and signs and signals abound to remind us of this fact. One such telling symbol exists in the inscription of a placard that has existed on the Chinese side of the border for hundreds of years. Originally reading: “The GreatSouthHoldingPass,” this was later changed to “Good Relationship with the South.” Today the sign reads, “FriendshipPass.” No explanation required here, then. A two-way 370 meter-long tunnel has been constructed to accommodate yet to be built highways leading in to and out of Vietnam, which will supposedly speed up border crossings greatly. It has been named the “Friendship Border Tunnel.”
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A store owner. by Paul Unwin |
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The Guangxi Zhuang Autonomous Region also plans to build an international logistics park at the border to boost trade with ASEAN countries. With an investment of 120 million yuan (about $14.8 million), the park will be located in Pingxiang, cover an area of about 120 hectares, and is scheduled for completion by the end of 2010. Mayor of PingxiangCity, Lei Durong, said it would be: “A modern park integrating logistics, information and fund flows to promote economic cooperation between China and ASEAN countries.” He went on to comment, “The city government will provide a lower-interest loan to the infrastructure builders together with some favourable estate policies to boost its construction.”
The government has big plans for the future, and it would seem with the construction projects, those both planned and already underway, the future for trade in Pingxiang is certainly worth sticking around for, especially with the promise of such big future investment from the government. Traders are satisfied with business so far and optimistic about the future. With growing ties between China and ASEAN countries, coupled with Pingxiang’s ideal geographical position, there is certainly the prospect of big business here in the years to come.
