Durian fervor in China: how China-ASEAN synergy bears economic fruits

The Publicity Department of Guangxi Zhuang Autonomous Region

PR100346

 

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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