The Silk Road of the Halal Market

In terms of the halal economy, China will rely on its Muslim-majority regions of Ningxia, Gansu and Xinjiang and their Silk Road heritage to expand economic cooperation with Arab countries.

China exports many products. Its manufacturing capacity is strong, its real estate industry is developing rapidly, and green energy is also booming. Now Halal food exports to the Muslim market are also developing rapidly.

The recently concluded China (Ningxia) International Investment and Trade Fair in Yinchuan, the capital of the Ningxia Hui Autonomous Region, revealed another field with huge potential—the Muslim market.

More than 254 people from overseas and 900 companies took part in the fair, showcasing halal food, agricultural and related products, cashmere textiles, handicrafts and much more to potential investors and Chinese Muslim consumers.

Off-contact prospect: a Chinese Muslim sales assistant selling youtiao (fried dough sticks) at a halal food stall at the China (Ningxia) International Investment and Trade Fair in Yinchuan, Ningxia Hui Autonomous Region.

Malaysia was represented by about 30 companies and government agencies, including the Halal Industry Development Corporation and the Kelantan State Economic Development Corporation (KEDC).

Exhibitors from Malaysia showcased halal food and handicrafts from national cottage industries, cocoa products and the Halal Centre Park.

'We brought our unique food and handicrafts from Kelantan to this fair for the first time,' said KEDC Project and Property Manager Shah Abdul Kadir Mohamed.

'But during Ramadan, we also took part in other exhibitions and roadshows in parts of Urumqi and Guangzhou. We have built a network of customers and dealers in China.'

He said the agency hopes to promote the Kelantan exhibition, the China International Trade Expo (Zheng He 2010 Expo), to be held in Kota Bharu from 21 to 26 November, through participation in China.

Chinese painter Liu Zaitian, from Inner Mongolia, exhibited about 20 works depicting Islamic culture and Muslims.

'Most of the artworks depict my pilgrimage to Mecca,' he said.

'Through my work, I hope I can better play my part in promoting understanding between China and Arab and other Muslim countries.

'There are many cultural heritage buildings, including mosques in Saudi Arabia and China, and we should protect them.'

China is making use of Ningxia, its window to the Arab world. More than 36% of its population is Hui Chinese (Muslim), making it one of the regions with the largest ethnic-minority populations, and it has a long history of trade with the Middle East dating back to the Silk Road era.

China has about 20 million Muslims, most of whom live in Ningxia, Gansu and Xinjiang.

Li Rui, Vice Chairman of the Ningxia Hui Autonomous Region, said his government would become an important hub in western China, connecting the region with Arab and other Muslim countries.

To this end, the Chinese government, in cooperation with the broad Arab countries, held the first China-Arab States Economic and Trade Cooperation Forum in combination with the fair.

'Both the forum and the fair promote the opening of this part of China to the broad Arab countries,' he said.

Yuan Jilin, Director of the Development and Reform Commission of the Ningxia Hui Autonomous Region, said that the development of western China as a gateway to the Middle East would be highlighted in the 12th Five-Year Plan, China's blueprint for future development.

'If you look at the world map, you will find that both Ningxia and the Arab countries are at the center of energy production. We have similar cultures and customs since the dawn of civilization,' he said.

'China is a developing country. Opening up to the Middle East is a very important step in our development, and our general trade and cultural cooperation has been built from the early stage where we have a bright future.'

Yuan said that in the future, China will explore energy development and carry out more energy-related projects with Arab countries.

Jordanian Minister of Planning and International Cooperation Jafar Hassan said that trade between Arab countries and China would be diversified, including products such as cotton, food, cement and fertilizer, as well as investment in more high-tech fields.

'In recent years, China has registered remarkable achievements and become a role model for us all. We believe that China and the Arab countries have a strong political will to strengthen economic and trade relations and mutual investment,' he said.

'We hope that more Chinese companies will invest in high-tech projects, in addition to providing us with funds and technical assistance to promote infrastructure and energy development in the Arab countries.'

Trade between China and Arab countries has grown from about US$20 billion (RM62 billion) many years ago to US$120 billion (RM372 billion) in 2008, with Ningxia's share and contribution being about US$60 million (RM186 million).

Over the next five years, the two sides will work to push trade volume to at least US$200 billion (RM620 billion).

'So far, we have cooperated with Arab countries in trade, engineering contracting and labor services,' said Ma Fu, Director of the Ningxia Commerce Department.

'In the future, we will focus especially on Halal food, home appliances and commodity trade. We will guide more Arab-country enterprises to invest in Ningxia.'

Although Ningxia has no ports and faces obstacles in the logistics industry, it is determined to transform itself into a trade center like the Yiwu region in Zhejiang Province, China's most famous distribution center for small commodities.

'We will develop a trade and business center for trade with Arab countries with an investment of 2 billion yuan, as well as an industrial park for halal food and commodities,' he said.

'Through these efforts, we will ensure that Arab merchants can buy or sell their goods at lower cost, to make up for our lack of competitiveness compared with coastal areas.'