∣ Exhibiting / Food Market in China & Guangdong

General China Market

With the largest population in the world, China obviously is the most potential food market. From 2001-2006, its GDP value grew 9.5% and reaches 2225.7 billions in 2006， which exceeds the GDP value of Italy, France and America, and its position of GDP ranked in the world had leaped to the fourth from the sixth.

With the rapid development of economic, the income of Chinese people is also increasing. In 2006, the average income of city & town dwellers reaches 10,493, which increases 9.6% compared with 2004. Chinese people think that food is the most important part in their lives, foods & beverages accounts for 36.7% of consumers’ total income on averagely. According to statistic, total value of retail sales of consumer commodities is 6,700 billions, in which the retail sales value is over 1,000 billions. And the of consumer demand of convenience foods, meat products, cereals &oil products, vegetables & fruits, tea & beverage and solid condiments grew at an average of 6%-10% a year.

After China's entry into the WTO, the large market of China had been opened and the policy of importation encouragement, reduction in tariff and the abolishment of import quota are carrying on. In fact, the exported volume of agricultural products had fallen short of imported volume since 2004 and Ministry of Commerce of China declares that in the five years, the goal of foreign trade of China is expanding importation to keep the balance of foreign trade. Therefore, a series of preferential policies for encouraging importation will be carried on. From the end of 2006, tariff on part of goods will be reduced, in which tariff rate of agricultural products will be reduced to 15.2% from 15.3%, and the import quota of bean oil, palm oil and colza oil will be abolished, but just 9% of import rate. It can be forecasted that in the several years, food consumption of Chinese will be more and more international and brand name international foods will enter China market very soon.

About Guangdong Province

Guangdong Province is located in the southeast of China’s mainland. It is the most active economic development area in China mainland. At present, It is divided into 21 prefecture-level cities, 33 county-level cities, 43 counties and 3 autonomous counties, with a population of 110 million. The amount of GDP in Guangdong reaches 2100 billions yuan in 2005, which exceeds that in Hong Kong or Singapore.
Guangzhou ，the capital of Guangdong cities ，is the logistic center, political center and cultural center of south China, also is the main area that international foods will march in. From 1997, GDP of Guangzhou increases 15% rapidly for ten years in succession, and the per-capital GDP is 8,393 US dollars. Pearl-River Belt is the area with the most active economic vitality in China nowadays which abuts Hongkong and Macao. Food industry in this area is developed and consumers are upscale. There are more than 2,500 hotels for foreigners, 12,000 food processing enterprises and 50,000 food distributors, agents, imported & exported companies just in Guangzhou. According statistics, 70%-84% consumers of this area buy imported foods, and the consumer number is increasing. So, contribute to its geographical, professional and transportation advantages, Guangzhou serves as the China leading food and beverage purchasing and distribution center.