Linyi Forges New Heights in International Trade via the Belt and Road Initiative.docx
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LinyiForgesNewHeightsinInternationalTradeviatheBeltandRoadInitiative
LinyiForgesNewHeightsinInternationalTradeviatheBeltandRoadInitiative
LINYIMall’slogisticsnetworkshavehelpedustoestablishcontactwithmanyenterprisesandtraders.WeimportmorethanRMB3million’sworthofcommoditiestothecityeachmonth,”woodcarvingdealerandattendeeoftheSixthChina(Linyi)InternationalTradeandLogisticsFairAhmedfromPakistansaid.Morethanhalfofthe4,000commoditiesthathesenttothefairbyrailfreightthatmorninghadsoldbynoon.
TheopeningofanexpressfreighttrainservicefromLinyitoUrumqihasestablishedacommercialcorridorbetweenLinyiandCentralandWesternAsia,sosimplifyingcross-borderlogistics.TomaximizebenefitsofbringingintoeffecttheBeltandRoadInitiative,Linyihasbuiltagreenchannelfortransnationaltradethatwillcreateanewpatternofinternationaltradeandlogisticsindustry.
CommercialStrength
SituatedinsouthernShandongProvince,Linyiisaninlandcityfardistantfromtheregionalcenter.Overthepastthreedecades,however,thecityhasbecomeabarometerforChina’scommerceandtradecirculation.Itisnowpopularlyknownas“China’slogisticscity.”
Themall’scoreareawasoriginallyoneofChina’searliestspecializedwholesalemarketsandlargestdistributioncenters.LocalmerchantshaveputtheirbacksintodevelopingthecommerceandlogisticsindustryandtransformingLinyiintoacitysynonymouswithmoderncommerciallogistics.Havingprogressedfromthetrolleyfreightofdecadesagototoday’smodernlogisticsnetwork,LinyiMallisanationallyrecognizedspecializedmarketandkeylogisticsandwholesalecenter.ThedevelopmentpatternithasformedrendersLinyithenorthernequivalentofinternationallyfamoussmallcommoditytradecenterYiwuinsouthernChina.
“Unlessyou’vebeenthere,it’simpossibletoimaginejusthowbigthemarketis,”LinyiMunicipalCommitteeCPCsecretaryLinFenghaisaid.Youcanbuyalmostanything,fromneedle,threadandbuttonstogardenmachineryinLinyi.Itscommercialmarkethasbecomeoneofthecity’smostdistinctivefeatures.SpendingjustaminuteineachofLinyi’sstoreswouldtake48days.Therearenow128specializedmarketsinthecitythatstockmorethan60,000typesofcommoditiesin27categories.Linyialsohas22logisticsparksthatdailyhandlemorethan200,000tonsofshipments.
Inrecentyears,thecityhascapitalizedonitscommercialandlogisticsadvantagestobringintoeffectitsinternationalizationstrategy.Policiesfacilitatingtradethathavebeenapprovedandcarriedoutincludetourismshoppingandcomprehensivepilotreformstointernationaltrade.Linyi’sultimategoalistobecomethecountry’slargestwholesalecommoditiescenter,logisticsdistributionandallocationcenter,e-commercecenter,andalsointernationalconferenceandexhibitioncenter.Thecityhasaccordinglyaccelerateditstransformationandupgrade.Duringthefirstthreequartersof2015themallachievedaturnoverofRMB241.296billion,ayear-on-yeargrowthof24.7percent,andLinyi’sexportsalesreachedUS$4.23billion. “GoingGlobal”Accelerated
“AlmostalldomesticmanufacturershavedealersoragentsinLinyi.Itslogisticsaddstrongappealtothecity’smarkets,”directorofLinyiMallManagementCommitteeYaoMingsaid.Marketsandlogisticscouldbesaidtorepresenttheunsolvablechicken-andeggconundrum,nooneknowswhichcamefirst.Whatiscertainisthatthelogisticsindustrypropelstheprosperityanddevelopmentoflocalmarkets.
The2,094logisticsoperatorsand18,000freightvehiclesinLinyi’svariousmarketsformalogisticsnetworkcoveringallofChina’scounty-levelcitiesandports.Themall’stotallogisticsearningsreachedRMB400billionlastyear.ThankstoitsunparalleledscaleadvantageandhighefficiencythepriceofLinyi’slogisticsis30percentlowerthanthenationalaverage.
“Linyi’sgoalofbuildingacommerciallinkbetweenChinaandtheworldreliesonthedevelopmentofamodernlogisticsindustry,”entrepreneurGaoJuansaid.Toherwayofthinking,modernlogisticsmeansthenationwideandworldwideflowofgoodsthroughaviation,rail,waterways,andhighways.ByblendinginwiththeBeltandRoadInitiativeLinyiwillpromotethedevelopmentofmodernlogisticsandsodrivelocaleconomicgrowth.
ImplementationoftheBeltandRoadInitiativeandtheChina-SouthKoreaFreeTradeAgreementhasbroughttheinternationalanddomesticmarketscloser.Linyi’sgeographicaladvantageishighlightedbyitslinkingtheMaritimeSilkRoadintheeastwiththeSilkRoadEconomicBeltinthewest.Itishightime,therefore,topropeltheinternationalizationofLinyiMall.
TheopeningonJuly1,2015ofanexpresscontainertrainserviceinLinyiformedtworailwayhyper-channels,oneheadingwesttoUrumqiinthenorthwestandtheothertoGuangzhouinthesouth.Eachyear,LinyiwilldelivermorethansixmilliontonsofcargotoXinjiang,aswellasCentralAsia,SouthAsia,WestAsia,andEurope,viatheEurasianContinentalBridge.Thenon-stopfreighttrainwillshortenthejourneyfromLinyitoUrumqito72hours,soenhancingLinyi’slogisticsradiatingcapacity.Moreover,onJune28,2015themaidenflightfromLinyitoMuaninSouthKoreatookplace.Thecityisexpectedtobeincludedasaportinpassengerandcargocharterflightsbetweenthetwodestinations,andalsoasadirectshippingpoint.AsShandong’sprimaryaviationport,LinyiAirporthasbeenincludedintheprovince’sPortDevelopmentPlanningfrom2016to2020. Bycompilingalong-termlogisticsdevelopmentprogram,Linyihashastenedthebuildingofacomprehensivehighway,railway,aviation,andportlogisticssystem.ThecityalsoaimstobuildanexpressfreighttrainlogisticsnetworkconnectingGuangzhou,Urumqi,Nanning,andHarbin.Byachievinginfrastructureconnectivity,Linyiisdeliveringmoreproductstotheworld.
Linyialsohasanastutegraspoftherelationshipsbetweencommerceandlogistics,marketandindustry,onlineandofflineintegration,domesticandforeigntrade,andcoreindustryandsupportingindustry.Comprehensivepilotinternationaltradereformandconstructionofanall-inclusivebondedzonehassteppeduptheinternationalizationpaceofLinyiMall.ItisnowontheGeneralAdministrationofCustomsshortlistofChina’stop-100foreigntradecities.
InternetPlusLinyiMall
LinyiMallownsChina’slargestmarketcluster.Wholesalemarketswerepopularaboutadecadeago,buttodayistheageofe-business.Newbusinessruleshavingchangedthecommercelogisticsindustry,businesscirclesinLinyiareevolvingfromtraditionalwholesalertoe-businesssupply.ThishascreatedanewinterpretationoftheLinyilegend?
Cthatofbuyfromtheworldandsellglobally.
TheSixthChina(Linyi)InternationalTradeandLogisticsFairopenedonOctober18,2015withthemunicipalgovernment’sofficiallaunchofthe“smartLinyiMall.”Itwillbuildadomestictechnology-leading“InternetplusLinyiMall”modeservingmorethan60,000wholesalersandvariouslogisticsenterprises.Itwillinthefuturebeacomprehensivetradingplatformfore-business,logistics,conventions,andexhibitions,aswellaspayments.Itwillalsobeacenterforgovernmentprocurements,wholesaleandlogisticstransfers,anddistribution.
“Reformandtransformationareirresistibletrends,asotherwisethedividendsofaccumulativedevelopmentwillgraduallybeconsumed,”MayorofLinyiZhangShupingsaid.Thecityisabouttobuilde-business,informationandpaymentplatforms.Throughonlineandofflineintegration,logisticsandcommerce,aswellasdomesticandforeigntrade,Linyiwillexploreanewdevelopmentpatternofmoderncirculationindustry.
AccordingtoaLinyiMallsurvey,thesalesvolumeofcommercialtenantswhodonotdealine-businesshasfallen10-30percent.Theimpactofe-businessontraditionalwholesalebusinessisthusobvious:
itisbesttotaketheinitiativeandadaptratherthansitandpassivelywaittoseewhathappens. PresidentofLinyiYaxunE-businessServiceCompanyNieWenchangbelievesthate-commerceisdependentontherealeconomyandlogistics.Linyi’svastmarketentitiesandextensivelogisticsnetworkhavelaidasolidfoundationfore-commercedevelopment.Althougharelativelylatestarter,governmentguidanceandthezealofcommercialtenantshavecoaxedtheblossomingofmorethan20,000e-businessenterprisesandaround100,000workersinLinyiMall,whichin2014generatedaturnoverofRMB30.95billion.Afteryearsofefforts,therefore,an“onlinemall”isexpectedtobebuilt.
Linyialsointendstobuildanecologicale-businesschain,includingaverticaltradingplatform,domestictradee-business,cross-bordere-business,andane-businessserviceprovider,soquickeningonline-offlineintegration.Basedonitsmarketingchanneladvantage,Linyihasunveiledanumberofmeasuresthatincludee-businessmodification,buildingB2BandB2Cverticalplatforms,andtheplanningandconstructionofacrossbordere-businessinnovationparkandtalentincubator.
Atpresent,LinyiMallhouses40,000e-businesses,morethan100e-businessserviceproviders,ninee-businessindustrialparks,and42e-businessplatforms.Some,suchasand,havebecomeindustry-leadinganddistinctivee-businessplatforms.
ExploretheInternationalMarket
InthecourseofimplementingtheBeltandRoadInitiative,Linyihasstrengthenedcooperationwithlargeenterprisesundertakingoverseasengineeringprojects.Promotingconstructionof“overseasshoppingmalls”