Dragon Mart Cancun- In deep with China`s biggest exhibition center for Chinese products in the world

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Dragon Mart Cancun: In deep with China’s biggest exhibition center for Chinese products in the world

【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 Commerce’s foreign trade and development bureau,the CDM is to be undertaken by the Chinamex Middle East Investment & Trade Promotion Centre Ltd.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 Mexico’s 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.