The last China-South Asia Expo was held in 2019, and its resumption saw hundreds of trade and investment deals made, though some would-be investors remain cautious. Global supply-chain upheaval and trade tensions have forced China to get creative in securing new buyers in the face of geopolitical disputes

After four long years, China has secured a number of deals with its South Asian neighbours at the first in-person gathering of the 7th China-South Asia Expo since before the pandemic.

The five-day event, held in Kunming, Yunnan province, served as an opportunity for regional economies to expand their trade pool amid US tariffs and a global supply-chain decoupling.

However, businesses from India – now believed to be the world’s most populous country – reported a relatively low presence at the expo.

A total of 342 investment pacts and 141 trade contracts were signed – up 2.2 and 3.9 per cent, respectively, from the 2019 expo. But just 52 Indian companies were present, compared with 140 in 2019, according to Ajay Sahai, director at the Federation of Indian Export Organisation, as Indian businessmen are taking the “wait and see” approach amid the widespread economic slowdown.

“We’re hoping that both the global economy, as well as the Chinese economy, will improve in 2024,” he told the Post at the expo. “So, right now, the participation size [at the expo] will be limited because people are just testing the market here at this point in time.”

India and China have been in a border stand-off for years, punctuated by a deadly clash between soldiers along the disputed Himalayan frontier in 2020. Additionally, India has opted not to engage in the China-led Belt and Road Initiative, contending that Beijing’s trade initiative to link economies does not offer a level playing field for Indian businesses.

When addressing the expo, Chinese foreign minister Wang Yi called on South Asian countries “to ride China’s development momentum and share the benefits of China’s growth”.

As a wholesaler of arts and crafts, Rasmila Biswal, the owner of Oditribe Innovations in India, took part in the expo for the first time and said diplomatic relations between China and India were not a factor in her business decisions.

“So you look at the big market in China, and if they have any requirements that we can fulfil, then why not,” Biswal said.

Dipti Ranjan Mohanty, who deals in Indian handicrafts as the owner of Medi Bank, also participated in the exhibition for the first time with the intention of finding a new buyer in China.

“Diplomatic relationships between China and India don’t matter to Indian businessmen,” he said, adding that it was not difficult to get a business visa to enter China.

But foreigners tend to feel “a bit inconvenient” because they cannot use Google, WhatsApp, or major credit cards, he added.

The total trade value between China and South Asia was near US$200 billion last year, and over the past decade it grew by an average annual rate of 8.3 per cent.

China has been the largest trade partner of Pakistan, Bangladesh and the Maldives for many years, while water-related products, tea leaves and nuts from South Asian countries are the favourite choices among Chinese customers.

Other neighbouring countries took a different approach at the expo. Pakistan, for instance, had around 75 companies at the show, and there were about 100 businessmen from Nepal setting up booths to attract Chinese buyers.

Faisal Rasheed, CEO of Pakistan’s Mega International, which sells goods ranging from jewellery to rugs, said that the Belt and Road Initiative has connected roads and ports that help facilitate the transport of products with just one permit issued by China.

“If we move by sea, it’s very convenient from Karachi to Guangzhou, Hong Kong and also Tianjin” without having to make midway stops, Rasheed explained.

With road connections, it takes 10 days to move products from Pakistan to Kashgar in the Xinjiang Uygur autonomous region.