China Textile Federation Delegation Goes Out To Explore "Middle East Gate" Jordan

As a "one belt and one road" country, Jordan's relations with China have been developing steadily and continuously in recent years.

China is Jordan's largest source of import and is also the third largest trading partner.

China and the two countries have complementary advantages. In order to further understand the opportunities for investment and development in Jordan, Yang Jizhao, vice president of the China Textile Industry Federation and chairman of the China knitted Industrial Association, went to Israel to conduct research on investment environment.

Lin Yunfeng, Secretary General of the International Trade Office of China Federation of textile industry, Secretary General of the Federation of China textile international productivity cooperation enterprises, deputy director of China Textile Industry Federation marketing department, Qu Jing, vice chairman of China knitted Industrial Association, Li Ruiping, vice president of China printing and dyeing industry association, Li Guimei, deputy chairman of China Industrial Textiles Industry Association, and some key entrepreneurs' representatives.

Jordan is located in the northwestern part of Arabia peninsula. It is adjacent to Israel, Palestine, Syria, Iraq and Saudi Arabia. It is located at the intersection of the three continents of Asia, Europe and Africa. It has the only outlet to Aqaba in the Red Sea. It has been the main trade between the middle East since ancient times.

Jordan's political situation is generally stable, its foreign policy is neutral, its economic and trade environment is developing well, its regional advantages are very obvious, and it has the title of "Middle East Gate".

Business talks with Jordanian Ministry of industry and trade, Jordanian Investment Committee, Jordan Industrial Estates Corporation and related industry associations

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Accompanied by Xiao Wensheng, economic and Commercial Counselor of the Chinese Embassy in Jordan, the delegation held business talks with Jordan's Ministry of industry and trade and Investment Committee.

Qatarneh, Deputy Secretary General for technical affairs of the Ministry of industry and commerce, introduced to the delegation the latest progress of the free trade agreement signed by Jordan.

Although Jordan has a small population and a limited market, its radiation market has better conditions. At present, it has signed a free trade area agreement with the United States, Canada and Singapore.

In December 2018, Jordan and the European Union signed new progress in cooperation agreements, and reached a new agreement.

According to the new agreement, the European Union will provide Jordan with a preferential treatment policy for the least developed countries by December 2030, which will undoubtedly provide more convenient conditions for investors to enter the European market.

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A working symposium was held with the Jordanian Investment Commission and the Jordanian chamber of Commerce.

Mr. Fareedon Hartoqa, Secretary General of the Jordanian Investment Committee, warmly welcomed the delegation's visit, and thanked the business office of the Chinese Embassy in Jordan for doing a lot of work to promote economic and trade exchanges between China and the two countries.

Subsequently, the delegation gave a detailed account of the overall investment environment of Jordan. The Investment Committee hopes that more Chinese enterprises will invest in Jordan. Investment enterprises can make full use of the advantages of the free trade agreement signed by Jordan and North America, the European Union, Asia and eighteen Arabia countries, and enter the market of the United States, the European Union and neighboring Arabia countries.

In recent years, the Jordanian Investment Commission has continuously strengthened its understanding of China through visits to cities such as Shanghai and Xiamen. It plans to participate in the investment forum held in China in September this year, hoping to let more Chinese enterprises understand the investment environment of Jordan.

The head of the clothing and leather Department of the Jordanian industrial chamber discussed in the forum that the clothing industry is one of the main industrial sectors in Jordan. The Jordanian government attaches great importance to the development of the garment industry. It has developed well in recent years, and has played a great role in promoting local employment and promoting the development of the national economy.

From 2016 to 2018, the growth rate of Jordan's clothing exports remained at an annual average of 10.6%, while Jordan's clothing exports amounted to US $1 billion 800 million in 2018, accounting for 25% of the total exports of the country, and the apparel industry provided more than 70 thousand jobs for the local people.

At present, Jordan has a total of more than 1000 clothing and leather enterprises, including knitting, embroidery, carpets, shoes and other industries, of which 65 are pure mouth type clothing enterprises.

During the forum, vice president Yang Jizhao said that through this survey, we can see that the Jordanian government's determination to attract foreign investment has also learned that the Jordanian government has created many favorable conditions for investors.

Welcome the Jordanian Investment Commission to introduce Jordan's overall investment situation at the exhibition organized by China Textile Association, so that more Chinese textile and garment enterprises will understand Jordan.

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The delegation was warmly received by Jordan Industrial EstatesCompany and Irbid chamber of Commerce, and the two sides held a working Symposium.

It is understood that Jordan Industrial Estates Corporation was established in 1980 to improve Jordan's investment environment, make Jordan investment more attractive and accelerate the industrialization of Jordan, and has made significant contributions to Jordan's economic development and social prosperity since its establishment.

Of the 12 industrial zones under its management, 6 have been built and 4 are under construction (planned for operation in 2019), and 2 will be built in the future.

The preferential measures provided by industrial zones for investment enterprises in the region are mainly as follows: the income tax is reduced from 14% to 5%; no sales tax is imposed on any activities involving industrial practice; import duties of all materials, instruments, machinery and equipment for construction and equipment projects are not levied; no social service tax is imposed on all income accumulated in the development zone; dividend tax is not levied on all income generated in the development zone.

Visiting local clothing enterprises

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Classic Fashion Apparel entered the Hassan Industrial Park in 2003 and is the largest garment manufacturer in Jordan. It mainly produces sports and casual clothing.

The products are exported to the US market, with an annual export volume of about US $600 million. Its exports account for about 1/3 of Jordan's total exports, employing 24 thousand people, 65% of them from Bangladesh, 25% from local staff, and 10% from other countries.

The company's terminal customers include Under Armour, GAP, AmericanEagle, Adidas and other international famous brands.

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Ye Hui clothing company has been in Jordan for more than ten years, mainly for American brand Ralph Lauren to make POLO shirts and casual clothes processing. All the accessories used for the production of garments come from China.

At present, the company has more than 500 employees from five countries.

Hassan industrial area, located in Irbid, north of Amman, Jordan capital, was built in 1991. It is Jordan's largest QIZ qualified industrial zone. The park, based on its preferential tax rate for exports to the US and Europe, has attracted textile and garment enterprises from the United States, India and Singapore to invest and build factories.

At present, there are 151 enterprises in the park. In 2018, the total export volume was US $517 million, which solved the employment of 27317 local people.

Enjoying tariff free exportation in the US market is the main factor to attract the two companies to invest in Jordan.

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Zun Wei Garment Co., Ltd. is located in the AL-tajamouat industrial zone of Amman, Jordan. Its headquarters is in Hongkong, China. It was listed on NASDAQ in December 3, 2018. It is the first clothing company in Jordan and even the world's first listed company on NASDAQ.

The company currently employs 3300 people, with an annual revenue of 62 million US dollars, and 8 million 200 thousand garments annually. The products are mainly exported to the United States and the United Kingdom, of which 80% are exported to the United States, and 20% are exported to the United Kingdom.

The company's terminal customers include: the North Face, Cloumbia, Dicks, Disel and other nineteen brand enterprises.

During its talks with Jordanian Ministry of industry and trade, Jordanian Investment Committee, Jordan Industrial Estates Corporation and other government associations and trade associations, the delegation exchanged experiences with the garment enterprises concerned in investing, and gained a deeper understanding of the development status and the overall investment environment of the textile and garment industry in Jordan.

In addition, the accessories of Jordanian garment enterprises mainly rely on imports, and also provide cooperative opportunities for Chinese fabric manufacturers.