Dragon Mart Cancun: In deep with China’s biggest exhibition center for Chinese products in the world
2013-04-23 02:56:00JonnathanVazquez
Jonnathan Vazquez
【Abstract】The creation of Chinas biggest exhibition center for Chinese products outside china will take place in the city of Cancun, Mexico, The proposed complex would house 3,040 showrooms, divided among 14 industrial sectors and targeting wholesalers from across Latin America, according to the business scheme most of the merchandise ordered will be shipped directly to the port nearest to the buyer. The Dragon Mart concept would enable, for instance, home builders and consumers to shop for Chinese light fixtures and other components in Mexico, an ambitious project that seek a boost on the economic and cultural ties between Mexico and China.
【Key words】Dragon Mart;Exhibition;Mexico;Trade
The creation of Chinas biggest exhibition center for Chinese products outside china will take place in the city of Cancun,Mexico, planned to start with the groundbreaking ceremony after the spring festival on February 2013 to be completed in its first stage of seven by May 2014.The proposed complex would house 3,040 showrooms,divided among 14 industrial sectors and targeting wholesalers from across Latin America.Projections estimate that it would draw 1 million people a year to an already popular beach destination in the Yucatan Peninsula.If the project goes ahead as planned, it would follow the rough model of Dragon Mart Dubai,the first effort by Chinese business and industry to set up a massive showroom center abroad to promote Chinese products.Dragon Mart Dubai, which measures more than 1,300 yards opened in 2004. DMC will contain sectors that offer home appliances,communication equipment,lighting,household furnishings,jewelry,building materials, furniture, toys,machinery,medical equipment,auto parts,foodstuffs and general merchandise.The DMC development plan includes 722 homes for Chinese administrators of more than 3,000 storefronts;the village would also host events to spotlight Chinese music,dance and culture,in addition the project will have its own water treatment plant and will make extensive use of solar energy.The initial investment is projected to be 200 million dollars to a total of a 1.5 billion(10 billion yuan),the Chinese government plans to take a 40 percent stake while the Mexican and US government 30 percent stake each,according to Yanquing,chairman of Chengkai (Beijing) Investment Co.Ltd.Sponsored by the Chinese Ministry of Commerces foreign trade and development bureau,the CDM is to be undertaken by the Chinamex Middle East Investment & Trade Promotion Centre Ltd.
Why 'Dragon City' settled in Latin America it?It is consistent that in the past 10 years,Latin America maintained a rapid and stable economic growth in addition to concerns about North-South trade project director Juan Carlos Lopez told the media.It is expected 400 to 600 agents of mainland Chinese companies to work at DMC,part of the 8,550 direct and indirect jobs that its expected the project will generate.In the search for the appropriate place to establish the first Dragon Mart in Latin America, the city of Cancun,Mexico won because its airport has more international flights than any other in Latin America,and its world-class hotels, restaurants and tourist attractions also will draw buyers that make an excellent opportunity to diversify the economy of the zone. Chinamex considered a series of other cities for the Dragon Mart,including Los Angeles,Miami,Panama City and Sao Paulo,as well as other locations in Mexico,including Tijuana, according to promotional literature.
According to the business scheme most of the merchandise ordered through DMC will never come through the Yucatan Peninsula.Instead,it will be shipped directly to the port nearest to the buyer,volumes may be huge as expected to be larger than Dragon Mart Dubai that last year traded the equivalent of 52,000 20-foot containers.
Although DMC is considered as an ambitious project that seek a boost on the economic and cultural ties between Mexico and China,the project has raised concerns in Mexico,Latin Americas second largest economy,where both the leading business associations as well as academics and environmentalists have expressed their objections, fearing that the shopping complex will foster smuggling, unfair competition and the sale of counterfeit products,in addition to causing the area environmental harm.Ricardo Samaniego,director of the Applied Economics and Public Policy Centre, strongly opposes the project, assuring that the construction of “Dragon Mart must be put off until its environmental and socioeconomic costs are assessed” the construction of the DMC center is generating anxiety due its large scale and proximity to a protected coral reef have triggered objections from environmentalists and hotel operators. And locals and business leaders fear it would flood Mexico with Chinese products and function as a self-contained colony with little benefit for Mexican workers."This project has many detractors,"Cancún Mayor Julian Ricalde said,explaining that the expo center's promoters have failed to convince the local community that DMC is beneficial for Mexico.
The overseers of DMC have made concessions.For one,Juan Carlos Lopez, chief executive of DMC,said the expo had decided to ban exhibits by Chinese sellers of shoes and clothing since these two industries are very sensitive in Mexico.Another concession,Lopez said,is that the expo center will no longer be only for Chinese vendors but also for vendors from around the world that means that anyone who owns a space in the DMC will have access to the housing option.Juan Carlos López,DMC chief executive,has made several visits to the Mexican capital recently to stem a tide of negative coverage by Mexican media and growing political opposition.Mr.López said the project leaders were surprised by the amount of controversy the expo center has created.Mexico needs to stop viewing everything to do with China with "distrust and fear,"he said at a news conference.
Trade relations between Mexico and China have long been tense as the countries vie for market share of U.S.imports.China is Mexicos second biggest trading partner,behind the United States,yet no efforts have been made by to modify its highly negative bilateral trade balance or to attract Chinese foreign direct investment(FDI),which is marginal. Bilateral trade is also heavily skewed,with Chinese exports to Mexico accounting for about 90% of the roughly $60 billion of goods that flow each year between the two countries, according to Mexican government data.The trade deficit has fueled resentment and xenophobia in Mexico. For China, the expo represents a way to diversify its exports,which are still heavily dependent of the U.S.,Europe and Japan.It also comes as Chinese companies try to build global brands that command higher profits rather than acting merely as final assemblers of parts made elsewhere or suppliers of generic components.
The Dragon Mart concept would enable,for instance,home builders and consumers to shop for Chinese light fixtures and other components in Mexico.The Chinese government plans to take a 40 percent stake while the Mexican and US government 30 percent stake each.The project is targeting not just Mexico's large and increasingly affluent consumer market, but also that of Latin America and the Caribbean.
