Stable Chinese commodity supply dampens Middle East inflation threat

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A video screenshot shows an Iraqi merchant demonstrating a fluffy cactus that can sing and dance at a market in Baghdad, Iraq, April 17, 2022. Photo: Xinhua

Colorful crystal lights, fluffy cactus that can sing and dance… With the advantages of innovation, high quality and low price, the small items imported from Yiwu city, Zhejiang province (east of the China), became popular among Arabs during the Muslim holy month of Ramadan this year.

Arab consumers perceive Chinese products as having good value in the face of inflation, Arab businessmen benefit from trade with China amid the COVID-19 pandemic, and Arab analysts believe the economy China brings strong vitality to the development of Arab countries at a time when the global economy is facing significant challenges.

GOOD VALUE FOR ARAB CONSUMERS

On Abdel-Mohsen Street in Riyadh, Mohammed Mubarak, a Saudi customer, chose a lamp made in China as a gift for his friends.

“At a time when everything is going up due to inflation, Chinese lamps, which include a wide selection of well-made crystal ceiling lights, wall sconces and twinkling string lights, are good value for money, making them favored Ramadan gifts for many Saudi buyers,” he said.

In central Baghdad, the Iraqi capital, a wide variety of children’s toys, including Chinese-made boxes for Bobbi girls, toy cars and fluffy cacti are on display at Mohammed Maalleh’s stall.

“Iraqi consumers like Chinese products with good quality and low prices, and we can ask Chinese producers to modify the design according to customers’ personal requests,” said Mohammed, who has been importing and selling Chinese products for more than 20 years. 10 years. Xinhua.

“Chinese manufacturers are capable of producing anything,” he said. According to Mohammed, his business selling Chinese items has been good despite the economic downturn.

According to statistics from Yiwu Municipal Bureau of Commerce.

RELIABLE PARTNER FOR ARAB TRADERS

While Arab customers consider Chinese products profitable, Arab businessmen have benefited greatly from trade with China.

Abdulrahman Alawwad, a Saudi businessman who has traded with Chinese companies for more than 10 years, said his Chinese business partners were “reliable and trustworthy”.

The good trade momentum between China and Saudi Arabia in recent years is impressive, he said.

Saudi Arabia has long been China’s biggest trading partner in West Asia and Africa. Bilateral trade volume between the two countries in the first half of 2021 was 40.1 billion U.S. dollars, a year-on-year increase of 21.4 percent, according to the Chinese Foreign Ministry.

“China plays a key role in the global market, especially at a time when the world is undergoing significant changes due to the COVID-19 pandemic and other economic challenges,” Abdulrahman said.

STRONG MOMENTUM FOR THE ARAB ECONOMY

“Egyptian-Chinese trade has seen a significant increase in volume over the past few years, and it has also seen a leap in quality, as Egypt has started importing high-end products from China,” said Diaa Helmy. , General Secretary of the Egyptian -Chinese Chamber of Commerce.

Helmy said the increase in bilateral trade includes both Chinese exports to Egypt and Egyptian exports to China, which “is a good sign of an improving trade balance.”

He sees China’s economic development and resilience as positive for the global economy, especially for developing countries, “because China is a developing country that supports the development of Egypt, Arab countries and of the African continent”.

Yarob Mahmoud, professor of economics at Al-Iraqia University’s College of Administration and Economics in Iraq, shares Helmy’s view.

“China has actively and positively contributed to the development of the economies of Arab countries, including Iraq,” Yarob said.

Iraq was China’s third-largest trading partner among Arab countries in 2020, with bilateral trade reaching 30.18 billion U.S. dollars, according to the Chinese Foreign Ministry.

“The statistics are clear proof of China’s active and positive role in helping and supporting the Iraqi economy during difficult times,” Yarob said.

A Yemeni merchant introduces teapot prices to Saudi customers via video at Yiwu International Trade Town in Yiwu city, east China's Zhejiang province, Jan 14, 2021. Photo: Xinhua

A Yemeni merchant introduces teapot prices to Saudi customers via video at Yiwu International Trade Town in Yiwu city, east China’s Zhejiang province, Jan 14, 2021. Photo: Xinhua


A Chinese merchant sorts toys at a store in Yiwu International Trade City in Yiwu City, east China’s Zhejiang Province, March 29, 2022. Photo: Xinhua

Lanterns are sold at a market during the holy month of Ramadan in central Baghdad, Iraq, April 16, 2022. Photo: Xinhua

Lanterns are sold at a market during the holy month of Ramadan in central Baghdad, Iraq, April 16, 2022. Photo: Xinhua

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