Suriname can reach the Chinese sales market via Brazil – De Ware Tijd

Economic analyst sees opportunities for exporters, but warns about competition

Surinamese companies could seek cooperation with Brazilian companies to bring their products to the Chinese market at lower transport costs. By using existing trade connections between Brazil and China and shipping goods together, Surinamese exporters can bridge part of their logistics gap. Political and economics analyst Shen Shiwei mentions this possibility in conversation with the True Time during the ninth China International Import Expo (CIIE) in Shanghai, China. The fair lasts until November 10.

Text and image Ivan Cairo

Shen does not necessarily see the great distance between Suriname and China as an insurmountable obstacle to trade between the two countries. Brazil, which borders Suriname, maintains extensive trade relations with China and could therefore serve as a logistics link for Surinamese export products. “Perhaps Surinamese companies can use Brazil as a bridge to bring their products to China. By shipping goods together with other cargo, logistics costs can be reduced,” says Shen.

He points out that China already cooperates intensively with Latin American countries and regional economic partnerships. Brazil is one of the largest trading partners of the Asian superpower. Surinamese entrepreneurs could investigate how they can connect with the flows of goods that exist between both countries.

The analyst calls bundling freight a way to reduce costs. “In China we know the principle that cooperation makes you stronger. By working together, you can become more competitive, reduce costs and achieve better profit margins,” said Shen.

Small producers, big market

He states that the possibilities for Suriname must be viewed against the background of the enormous size of the Chinese economy. China is the second largest importer in the world and has a consumer market of more than one billion people. This also offers opportunities to producers from smaller countries. Although Suriname has a small economy that produces on a small scale compared to China’s productive power, this does not necessarily pose a problem for mutual trade, according to the analyst.

Shen particularly emphasizes the opportunities that Surinamese entrepreneurs can use to gain access to the Chinese market. He is not thinking exclusively of the major economic centres. The analyst points out that outside cities such as Beijing and Shanghai, there are also extensive sales opportunities in other parts of his country.

He mentions southwest China, other urban areas and the countryside, among others, where consumers are also interested in foreign products. He mentions coffee, tea and healthy food products as examples. “We have more than one billion people who use coffee and tea in their daily lives and are interested in good and healthy products,” he says.

For Surinamese companies it is important to find suitable business partners who know the local market and can assist with sales and distribution. Shen expects that entrepreneurs who succeed in this will also be able to find sales opportunities outside the well-known major cities.

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More Surinamese participation needed

He believes that Surinamese companies should make much more active use of international trade fairs such as the CIIE. This was specifically set up to provide foreign companies with access to the Chinese import market.

According to him, too few Surinamese entrepreneurs realize the possibilities such a fair offers. He cites the presence of large international companies as an indication of the importance attached to the CIIE worldwide.

More than three hundred of the five hundred largest companies in the world present their products at the fair every year. According to Shen, Surinamese companies should draw the conclusion that they themselves should be present more often. “It is time that more Surinamese companies become aware of the importance of the CIIE. They should come to China more often, visit the fair and make contacts.”

Shen explains that the fair not only provides an opportunity to present products, but especially to meet Chinese business partners. Such contacts can be important for the introduction of foreign products to the Chinese market, where knowledge of local consumer preferences and distribution channels plays a major role.

He therefore sees the fair as a platform where Surinamese entrepreneurs can seek cooperation with Chinese companies that can help them draw attention to their products and gain a place on the market.

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Fierce competition

At the same time, the analyst warns that the size of the Chinese market does not guarantee commercial success. Foreign producers have to deal with a large number of competitors, both from China itself and from other countries. “The competition in the Chinese market is particularly fierce. Anyone who wants to be successful here has to put in a lot of effort.”

The CIIE provides an opportunity to explore how other companies present their products and how they try to reach consumers. He mentions coffee as an example of a product in which suppliers from different countries compete with each other.

At the fair, Surinamese entrepreneurs can see how other producers develop their brands, position their products and promote their sales. This knowledge can be important if they want to enter the Chinese market themselves. “Here you can see who your competitors are, how they build their brands and how they promote their products.”

The stock exchange should therefore not be regarded solely as a place where trading contracts can be concluded. It is also an opportunity to exchange knowledge and experiences and to gain insight into the requirements of the Chinese market.

For smaller manufacturers, it is important not only to find a buyer, but also to understand how they can differentiate themselves from established suppliers, Shen says. Finding suitable local partners remains important for access to the Chinese market. “The Chinese market is big enough,” Shen said.