Country for PR: China
Contributor: Xinhua News Agency
Wednesday, September 20 2023 - 19:56
AsiaNet
Durian fervor in China: how China-ASEAN synergy bears economic fruits
NANNING, China, Sept. 20, 2023 /Xinhua-AsiaNet/--

At the China-ASEAN Expo, there's a palpable excitement about China's growing 
appetite for durian, the pungent "king of fruits."
- Last year, China imported 825,000 tonnes of durian, about four times the 
figure of 2017. The fruit has emerged as a prominent symbol of the booming 
China-ASEAN cooperation and China's vast market potential.
- Fruit dealers are rejoicing at tariff-free policies, expanding market access, 
and improving transportation infrastructure as a result of close China-ASEAN 
cooperation.

Seated behind a stack of durian-flavored snacks at the Malaysian pavilion of 
the China-ASEAN Expo, two livestreamers were introducing the Southeast Asian 
country's iconic thorny fruit.

"Malaysia is home to more than 200 durian varieties, but I know the Musang King 
is the favorite in China," said one of the livestreamers, who is a Malaysian 
fruit exhibitor, to hundreds of viewers on Douyin, the Chinese version of 
TikTok.

At the expo currently underway in south China's Guangxi Zhuang Autonomous 
Region, there's a palpable excitement about China's growing appetite for the 
pungent fruit, with many booths selling a motley of durian products, ranging 
from durian ice cream to durian coffee, while seeking cooperation with Chinese 
partners.

Lau Hieng Seng, hailing from Malaysia, brought more than 600 servings of 
durian-pulp ice cream to this year's exhibition, after missing out on three 
editions of the expo due to COVID-19.

"Anything with durian in it is hugely popular among Chinese consumers. Our only 
concern is whether our stock is sufficient," he said.

The Chinese market made up 91 percent of the world's demand for durian in the 
past two years, according to an HSBC report. Last year, the country imported 
825,000 tonnes of durian, about four times the figure of 2017, according to 
customs and industry association data.

As the vast majority of durians sold in the Chinese market are imported from 
Southeast Asia, the "king of fruits" has emerged as a prominent symbol of the 
booming China-ASEAN cooperation and China's vast market potential.

SUPER BIG MARKET

Chinese Premier Li Qiang on Sunday said that China-ASEAN relations have become 
the most successful and dynamic model for cooperation in the Asia-Pacific, and 
a clear example of building a community with a shared future for all.

With a total population of more than 2 billion, China and ASEAN countries 
constitute a huge market, with its expansion and integration continuing to 
inject new impetus into the regional economy.

The flow of goods in this regional market has continued to benefit from 
tariff-free policies and expanded market access under the frameworks of the 
China-ASEAN Free Trade Area and the Regional Comprehensive Economic Partnership 
(RCEP).

"A decade ago, ASEAN fruits like durian, mangosteen and golden coconut were 
rare in China, but now they can be seen in fruit stalls in almost every big 
Chinese city at increasingly affordable prices," said Wang Zhengbo, president 
of a Guangxi-based fruit company.

Durians in China used to be predominantly from Thailand and Malaysia and were 
expensive due to limited supplies. Last year, Vietnamese durians, known for 
their longer harvest season and lower prices, gained market access to China 
under the RCEP framework, which was followed by the import of fresh durians 
from the Philippines starting in January this year.

Jumping onto the bandwagon of Vietnamese durian imports, Wang's company last 
year signed contracts with Vietnamese durian farms covering nearly 3,000 
hectares.

"We plan to import more than 3,000 containers, or 60,000 tonnes, of Vietnamese 
durians this year to cater to the demand of the Chinese market," Wang said.

Official data from Vietnam showed the country earned more than 500 million U.S. 
dollars from durian exports in the first five months of the year, up 18 times 
from a year ago. Vietnam exported more than 65,000 tonnes of durian during the 
period, with China buying 97 percent of the shipment.

Wong Kok Loong from Malaysia has been closely following China's durian craze. 
The entrepreneur started attending the China-ASEAN Expo in 2015 to sell durian 
pastries and candies. Seeing China's e-commerce boom in recent years, he opened 
stores on the country's leading e-commerce platforms like JD.com and Tmall.

"Now my durian products have expanded from four categories to over 80, 
including durian custard roll and durian cheese," he said.

"China's durian market still has plenty of potential, as only a small 
proportion of Chinese, mainly living in large cities, have had durian and 
durian products," said Wong, expressing optimism regarding the market prospects 
in China.

In August, China's retail sales of consumer goods reported a 4.6-percent 
increase after a three-month slowdown, indicating an improving consumer 
sentiment as the country's economic recovery gained momentum.

REGIONAL CONNECTIVITY

In recent years, the development of transportation infrastructure amid the 
China-ASEAN cooperation on the Belt and Road Initiative (BRI) has significantly 
boosted the durian trade, as there are specific requirements for the fruit due 
to its short shelf life.

On June 11, a train loaded with about 500 tonnes of fresh Thai durians reached 
southwest China's Chongqing. Traveling on the China-Laos Railway, a flagship 
BRI project, the entire journey took only four days, compared with eight to 10 
days via previous land-sea routes.

"Durian imports have now become faster with more transportation options," said 
Guan Caixia, a Guangxi-based durian importer, whose Thai durians are either 
shipped through road-rail passage via Youyiguan land port or through sea-rail 
route via Qinzhou Port in the Beibu Gulf, a key knot for China-ASEAN trade.

But it is not just tropical fruits that have benefited from the improved 
connectivity. In Qinzhou, China-made auto parts, soda ash, and mechanical and 
electrical products are waiting to be shipped to ASEAN countries.

"We handle about 20 rail-sea intermodal trains every day, and our cargo 
delivery volume has increased from 27,000 tonnes in 2017 to nearly 3.3 million 
tonnes in 2022," said Huang Jiangnan, head of Qinzhou Port's east railway 
station.

According to China's Ministry of Commerce, trade between China and ASEAN 
countries rose from more than 100 billion U.S. dollars in 2004 to 975.3 billion 
dollars in 2022. The two sides have been each other's largest trading partners 
for three years in a row.

"Against the backdrop of sluggish world economic recovery, China-ASEAN trade 
and cooperation have maintained robust growth, which is of both regional and 
global significance," said Zhang Jianping, a deputy director of the Chinese 
Academy of International Trade and Economic Cooperation.

At the opening ceremony of the China-ASEAN Expo, Premier Li said China is 
willing to import more specialty products from ASEAN countries, upgrade 
regional connectivity, and build a more stable and smooth regional industrial 
and supply chain system based on comparative strengths.

"China will continue to firmly support the ASEAN-centered regional cooperation 
architecture, better synergize the Belt and Road Initiative with the 
development strategies of other countries, and help ASEAN countries realize 
their development goals. China will work with ASEAN countries to advance 
regional economic integration," Li said.

Source: The Publicity Department of Guangxi Zhuang Autonomous Region
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