Sichuan'S Export Shoe Enterprises Are Not Affected By Kyrgyz Riots

Recently, riots broke out in southern Kyrgyzstan, and more than 40 planned to go to Kyrgyzstan to participate in economic and trade negotiations.

Xiong Yi, Secretary General of the Sichuan import and Export Chamber of Commerce, said yesterday that in the recent years, enterprises in Sichuan have gradually turned their attention to the broad Central Asian market, including Kyrgyzstan, in recent years. The demand in Kyrgyzstan and other countries is quite in line with Sichuan's product mix. Sichuan's dominant industries such as light industry, textiles and manufacturing have huge market potential in Kyrgyzstan.

But for now, the trade with Kyrgyzstan is very small in the total volume of foreign trade in our province. At this stage, it has little impact on the export of our province.

Kyrgyzstan riots have little impact on Sichuan's exports.

At present, footwear products occupy a considerable proportion of Kyrgyzstan's exports in our province.

Data show that last year 1-11 months, Sichuan shoes exported to Kyrgyzstan, a total of 16 million pairs, a sharp increase of 199 times, accounting for 23.3% of the total exports of Sichuan shoes.

Li Ying, Secretary General of Sichuan footwear import and Export Chamber of Commerce, said Kyrgyzstan's riots had little impact on Sichuan's footwear industry.

"Chuan shoe exported to Kyrgyzstan last year is not bad, but this year, due to frequent local riots, Sichuan shoe companies which exported to Kyrgyzstan have gradually withdrawn from the local market after the first quarter."

Li Ying said frankly that the export volume of Sichuan shoes to Kyrgyzstan has changed significantly since the beginning of this year. "Sichuan shoes sold in Kyrgyzstan are sold in Kyrgyzstan, mainly through indirect sales by some foreign trade companies, and the quantity is also limited. Therefore, riots have little impact on personnel or sales volume."

The relevant person in charge of the foreign trade department of the Provincial Department of Commerce said that Kyrgyzstan's trade volume has been very small and its export products are concentrated on shoes and hats.

Data show that last year, our province's exports to Kyrgyzstan amounted to US $599 million 460 thousand, accounting for 4.2% of the total export share of the province, and this share continued to decline this year.

In April this year, our province's exports to Kyrgyzstan amounted to US $20 million 150 thousand, and in May it dropped to US $8 million 410 thousand, which accounted for 2.2% of our province's foreign trade from 1.8% in April.

The director of the Department of external affairs of the Provincial Department of commerce also said that, because there were no Sichuan enterprises contracted for projects in Kyrgyzstan, no casualties were found.

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Sichuan enterprises invest in Central Asia or push to the second half

In order to develop the Central Asian market, in April 2nd this year, the Sichuan provincial council for trade promotion held the "Central Asian investment environment and policy briefing". More than 40 chemical industry, building materials, machinery, mining, logistics, pharmaceuticals, food and other industries participated in the presentation.

According to the plan, the Sichuan provincial council for trade promotion will jointly host the "Central Asian Sichuan economic and trade negotiation and commodity exhibition" in 2010 with the Uzbekistan State Chamber of Commerce and industry and Kyrgyzstan State Chamber of Commerce and industry in May.

The event will be held in Uzbekistan's capital city of Tashkent and Bishkek, capital of Kyrgyzstan, but the event can not be held as scheduled.

"We have been informed that the event is postponed."

Sichuan Province International Trade Promotion Association yesterday revealed that the reason for the delay was to some extent affected by the Kyrgyzstan riots. "But from the current situation, this activity is still expected to be held in the second half of the year."

Special reminder

Ministry of Commerce: enterprises postpone to conflict areas

In view of the tense situation in southern Kyrgyzstan and the possibility of any conflict spreading at any time, the Ministry of Commerce has reminded businesses and citizens to suspend investment in Kyrgyzstan's conflict areas, business and work activities.