Chinese companies looking to secure deals with Iraqi companies (27/09/05)


A small delegation of Iraqi companies attending Shanghai's annual purchasing fair upstaged larger names such as Wal-Mart and General Electric, with Chinese suppliers forming a long line to meet the eight Iraqi firms attending the three-day summit.
 
Iraq will gain more power equipment
 
Due to the high level of interest, discussions were limited to just 20 minutes each, the state-run newspaper Shanghai Daily reported on Tuesday.

China has been keen to take advantage of the many business opportunities available as a result of Iraq's rebuilding effort. The companies are hopeful of securing orders financed by a $1 billion Iraqi government budget for reconstruction goods, ranging from home appliances to construction tools, electronics, generators, turbines and other power sector equipment.

It was not however made clear how much of that money the Iraqis plan to spend in China.

Doing business with Iraq now is less risky and with a higher return than before the war," said Wu Wenzhong, general manager of Huayi Electric Apparatus Group.

"Although most of the goods wanted will be low-end or mid-level products with thin margins, the capital flow in those markets is much faster than if we sell the products domestically," he added.

Enjoying an ever-increasing share of the world's manufacturing capacity, China is a key source of inexpensive goods, from retail to key infrastructural equipment.

Source: Aljazeera


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