Caribbean Export OUTLOOK 2016

Over the last six years, China dominated the

world’s export market and further cemented

itself as a global economic powerhouse. In 2014,

it generated awhopping 12.4%of all global exports,

worth an estimated US$2.3 trillion.

Today, while it remains the world’s second largest

economy,theoutlookforChinaislesscertain,witha

forecastofslowergrowth.Despitethis,itisstilllikely

toexceedthatofothermajoreconomiesoverthenext

two years, albeit at a smaller margin. Meanwhile,

China remains the most populous country in the

world and is home tomore than 1.3 billion people.

In comparison, the Caribbean region is a

significantly smaller geographic and economic

entity, and the massive trade imbalance between

the two serves as a reminder of this disparity.

This does not mean, however, that there is a

shortage of opportunities for the region inChina.

Among the items already imported byChina from

the region are gas and asphalt from Trinidad

and Tobago, timber, minerals and bauxite from

Guyana and bauxite from Jamaica. But this could

just be the beginning.

For Chandradath Singh, the Trinidad and Tobago

Ambassador to China, this is the ideal time for

the region to capitalise on the Asian nation’s

demand for goods and services emanating from

the Caribbean.

Ambassador Singh, who has headed the Embassy

since it was first opened in February 2014,

reports that several recent initiatives have been

implemented to attract foreign investment.

He said, “To encourage foreign direct investment,

the government has improved regulations, opened

up a new free trade zone to cater to foreign

countries andmade it easier to apply for a Chinese

GreenCard. Domestic laws, including Intellectual

Property Rights and Copywriting Laws are also

being improved to facilitate foreign investors.”

CARIFORUM firms should capitalise on these

attractive features for doing business in theworld’s

most populous country. Andwhile it is becoming

easier to do business inside China, technology has

also made access to this market much simpler.

China is now the second largest online shopping

country in the world. CARIFORUM firms now

have the opportunity to sell their products

directly to Chinese consumers, rather than going

through agents and other promoters.

“WithChina’s online shopping capabilities and the

demandforinternationalculturalitems,promoters

fromCARIFORUMcountriescouldfindalucrative

market for their calypso, reggae, Carnival, steel pan,

fashion,cuisine,andsomuchmoreofwhatwehave

to offer,” Ambassador Singh said.

Health Care

While China’s population has stabilised, people

over 60 now make up more than 13% of the

population. The percentage of people 14 years and

under has also shrunk at least 6% between 2000

and 2010, reaching a new low of 16.4% in 2013.

China’s one-child policy has resulted in its fertility

rate plunging to 1.6 births per woman, way below

the replacement rate of 2.1 births. The decline in

the working-age populationmeans that there will

be less available support for an increasingly older

Chinese population.

Chinese health care is quickly becoming one of

the most popular sectors for investors looking

for the next great, untapped market. Kirk John-

Williams, a Trinidadian investor who lived in

China for six years, believes these factors have

given rise to the demand for healthcare services

which the region can supply.

“More financial resources are now being allocated

towards the healthcare industry and social welfare

for the elderly. CARIFORUMcountries are an ideal

location for establishing homes for the elderly from

China, in very much the same way that whole

retirement communities are nowbeing established

inMiami and other US cities,” he said.

Tourism

For those in the tourism business, there could

be no better time to attract Chinese outbound

ARegional Strategy

for Capitalising on

Opportunities

inChina

BY Mango Media Caribbean

TRADE & EXPORT HOT SPOTS