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Economy · Macro
Chinese and foreign companies strike deals worth blns of dollars at CIIE
CKN
2018/11/08 07:44:21
1,870

Nov 08, 2018 (China Knowledge) - The China International Import Expo which runs from 5th November to 10th November this year has seen multiple billion-dollar deals over the past few days.

China’s state back Sinochem Group has concluded agreements for USD 11.3 billion worth of commodities such as crude oil and high-quality fertilizers and chemicals from overseas suppliers such as Saudi Aramco and BHP Billiton.

The company has struck agreements with 17 foreign companies at the CIIE and will be importing 19 different types of commodities.

In the auto industry, German automaker Volkswagen will be exporting up to USD 9 billion in vehicles and parts to China under a new agreement with FAW-Volkswagen which is one of the company’s joint ventures in the country.

Starting from 2019, FAW-Volkswagen will be purchasing completely knocked down (CKD) parts for the production of Volkswagen branded cars. FAW-VW will also be building fully built Audi models for sale in the Chinese market.

New Zealand dairy giant Fonterra Co-operative Group also added to the tally of high value deals with an agreement with supply chain company Xiamen C&D worth USD 1.7 billion to expand its business to China’s lower-tier cities.

Finally, NetEase Koala which specializes in cross-border e-commerce placed USD 2.9 billion worth of orders at the CIIE spanning across more than 100 companies. The deals are part of the NetEase Koala’s wider plan to spend USD 20 billion on direct purchases around the world to bring higher quality products from overseas to China.

The company has since signed several partnerships with companies such as Danone, Nestle and Sanofi.

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