Sri Lanka forges closer cooperation with China’s Guangxi region

The potential to collaborate with China’s Guangxi region for trade and investments came under spotlight in Colombo last week a top level bilateral forum along with a visit of a large delegation to Sri Lanka.

A 70-member high profile delegation from Guangxi engaged was engaged in a range of business meetings with interested Sri Lankan firms whilst the scope for partnerships was highlighted at a key forum attended by Government officials and the private sector.

The top delegation was led by Peng Qinghua, Secretary, Communist Party of Guangxi Zhuang Autonomous Region and included include Senior officials from the Provincial Government, Department of Commerce, Foreign Affairs Office, Commission of Tourism Department, Beibu Gulf Economic Zone & Cooperation, Wuzhou City Council, all from the Guangxi Zhuang Autonomous region and heads of Business enterprises. 

Areas of specialisation and interests ranged from agriculture, automobile, aluminium, construction equipment, development banking, electrical, engineering and construction, property development, tourism, industrial park development and gems and jewellery.

Organisers said the team included 50 representatives from 28 leading companies from Guangxi interested in investment and trading partners.

National Integration and Reconciliation State Minister A. H. M. Fowzie represented the Sri Lankan Government at the event titled Guangxi, China-Sri Lanka Economic & Trade Cooperation Forum. 

It was organized by the Provincial People’s Government of Guangxi Zhuang Autonomous Region, China together with the Ministry of Industry and Commerce, Sri Lanka and Co-organised by the Guangxi Department of Commerce, Department of Commerce of Sri Lanka and the Sri Lanka-China Business Council of the Ceylon Chamber of Commerce.Guangxi is an autonomous region in southern China, border. With a population of 49 million, Gunaxi’s capital and largest city is Nanning. It is also home for the city of Guilin, the provincial capital during the Ming and Qing dynasties. Its main industries are agriculture, textiles and iron. It’s GDP in 2016 was in excess of $ 255 billion or over 2% of China’s overall GDP. Guangxi has been successful in attracting over $ 34 billion in investments in 2016. 

Guangxi’s Beibu Gulf Port is the closest to Sri Lanka and Beibu Gulf shipping and logistics firms were part of the delegation. Guangxi’s trade with Sri Lanka in 2014, at a mere $ 5.6 million, has increased 14-fold to $ 79 million in 2016 - a very, very short span. Peng Qinghua, Secretary, Communist Party of Guangxi Zhuang Autonomous Region also held bilateral discussions with Industry and Commerce Minister Rishad Bathiudeen. He extended an invitation to Sri Lanka to take part in the 14th CAEXPO in Nanning in September this year.

Prospects for Guangxi Government to consider a special dedicated industry zone for Guangxi industries to set up in Sri Lanka and export to South Asian markets using FTAs with India and Pakistan had also come up for discussion.Minister Bathiudeen was among the 15 high-profile ASEAN and Chinese leaders joining the CAEXPO 13 held in Nanning city of Guangxi in September 2016. Sri Lanka was the first South Asian country to take part in the CAEXPO series as a Special Guest Country.

Sri Lanka-China Business Council of the Ceylon Chamber of Commerce said forum was a boost to strengthen the ties between Sri Lanka and China and can be considered a significant event when the two countries celebrate the 60th anniversary of the establishment of diplomatic relations. It offered a great opportunity for Sri Lankan enterprises looking to expand their respective businesses through transfer of new technology as well as infusion of new capital. 

The forum offered a great opportunity for the visiting Chinese enterprises to obtain a first-hand view of the investment climate in Sri Lanka and also to pursue opportunities for establishing fruitful partnerships with Sri Lankan enterprises, through which they could establish enterprises to cater not only to Sri Lanka but also to the Indian sub-continent and the Middle eastern markets, considering its strategic location and the well-developed infrastructure.

President of Sri Lanka-China Business Council, Lasantha Wickremesooriya said, “Many Sri Lankan enterprises have shown keen interest to meet the visiting Chinese enterprises and more are expected to register during the week. Forums such as this would help Sri Lankan and Chinese enterprises equally, to meet and pursue investment/trade opportunities for mutual benefit.”

- Pix by Lasantha Kumara