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To: smolejv@gmx.net who wrote (31435)	4/13/2003 9:44:40 PM
From: TobagoJack	Respond to of 74559

Feeding time ;0) Wenzhou prepares for Mid-East peace dividend Monday, April 14, 2003 biz.scmp.com MARK O'NEILL in Shanghai The restless businessmen of Wenzhou are preparing for a flood of orders from the Middle East after the collapse of Saddam Hussein's regime. They are counting on strong demand for building materials, clothing and shoes, and also Arab reluctance to buy British and American products. The Aukang Group, based in Zhejiang province's renowned entrepreneurial city, is in talks with buyers to ship millions of pairs of shoes to the Middle East, some for sale to Iraq. "Most of them are for Wenzhou companies with shops in the Gulf. They see major opportunities with the end of the war," group spokesman Luo Hui said. Wang Ouxiang, an official of the Wenzhou Foreign Labour Co-operation Bureau, said the city was collecting information on the Middle East in preparation for contracts. "Food and medicine are not our strong points. We can offer clothing, shoes, everyday items and building materials. Our firms are preparing goods at China Light Industrial City in Dubai, one of three big markets set up there by Wenzhou people," Mr Wang said. Last year, Wenzhou exported goods worth US$230 million to the Middle East, mainly to Iraq's neighbours, selling spectacles, cigarette lighters, shoes and other daily necessities. The United Arab Emirates, with US$150 million worth of trade, was Wenzhou's fifth-biggest trading partner last year. Last month, exports from Wenzhou to the Middle East fell 40 per cent from February because of higher insurance charges, delayed delivery and cancelled orders from foreign buyers. Some firms in the city stopped production totally or in part, with the nearly 100 Wenzhou traders in Iraq pulling out. One trader said Wenzhou business people had already left for Saudi Arabia, Kuwait and Jordan to prepare for sales opportunities in Iraq and the region. "Some estimates put the level of orders from Iraq at US$1 billion, for construction materials, clothing and consumer goods, which Arab countries do not produce. Wenzhou products are cheap. Also, many Arabs are disgusted at the invasion and will not want to buy British or American goods. This should be good for Chinese goods," the trader said. During the war, some Wenzhou firms had continued to deliver products to sales outlets in the Gulf in anticipation of its end, he said. One Wenzhou firm that has prospered during the war is Heng Xin Blanket, one of China's biggest producers of cotton and woollen military blankets with monthly output of 80,000 to 150,000 items. General manager Chen Shaohe said: "Since the war started, we have received about 10 inquiries a day. We are discussing three big contracts for military blankets for customers in the Middle East and west Asia, including international refugee agencies. "Our blankets sell for between 11 yuan (about HK$10.30) and 20 yuan apiece and, when a war breaks out, the price goes up about one yuan."