Zhengzhou on Way to Becoming China’s Centre of Logistics -Export to China Today-Trade XL Limited

Zhengzhou on Way to Becoming China’s Centre of Logistics

Its dimensions are breathtaking: The Zhengzhou Airport Comprehensive Experimental Zone (ZACEEZ), located adjacent to Henan’s central airport stretches over 415 square kilometers. The project resembles the total size of Vienna (414 km²), Tampa, FLA (441 km²), Yokohama (437 km²) or Casablanca (386 km²). The aim is to put the Chinese province Henan on the global map as the leading centre for trade and logistics services.

Futuristic Zhengzhou Airport becomes the centerpiece of the Free Trade Zone-Export To China Today-Trade XL Limited

Futuristic Zhengzhou Airport becomes the centerpiece of the Free Trade Zone

A new aviation metropolis is emerging in Henan, China’s most populated province, with stunning speed. Founded only in March of 2013, the ZACEEZ has meanwhile attracted investments of private enterprises and state-controlled financiers surpassing the incredible sum of US$369 billion. Its centerpiece is Zhengzhou Xinzheng International Airport (CGO) that will be gradually enlarged from currently 2 runways to 5 by 2045, with the upcoming southern runway (3,400m x 45m) dedicated for operations of cargo aircraft only. Last year, a total of 400,000 tons were handled at Zhengzhou, with 100,000 more expected in 2016. However, that seems to be only the beginning. By 2040, the airport targets an annual throughput of 5.2 million tons of air freight.


Main driver of this projected constant upswing of volumes will be the enterprises producing or trading in the vast industrial zone located adjacent to Zhengzhou airport, like Foxconn, Apple or the Henan Bonded Logistics Center (BLC), an influential and financially well-equipped state holding, managing most processes within the ZACEEZ free trade zone. The BLC acts like a broker, trying to align the interests of the provincial government with those of profit-driven private enterprises eager to benefit from the economic bonanza. “We are sitting in the driver’s seat, pulling the strings and linking businesses,” declares Chairwoman Xu Ping very frankly, who is also politically up front as leading member of the National People’s Congress at Henan province.

Conquering the world, demands Li Keqiang

This BLC assignment is fully in line with Beijing’s state-capitalistic policy aiming at ‘conquering the world’ by taking over control of technically and commercially advanced business sectors that are of high interest to put China on top of the industrial development worldwide. It was none other than Chinese Prime Minister Li Keqiang on his visit to the Zhengzhou Free Economic Zone in September of last year who instructed local Chinese traders to follow this approach by adjusting their commercial strategies accordingly, confirms Mrs Xu.
At e-commerce trader, located in the ZACEEZ, they are proud of being part of this far-reaching mission pushed forward by China’s government politically and through subsidies granted by Beijing and Henan’s provincial government to companies jumping on the bandwagon. “So far, our top figure was 40 million orders which we received in a single day,” states a manager. “Technically we are capable of processing much more,” he added to this. Although only in existence since 2013, they meanwhile claim to be China’s largest e-wholesaler. The e-commerce platform is mainly financing itself by charging a service fee for each order placed by buyers.

Global network of free trade zones

For putting China on top of world trade, as propagated by Li Keqiang the rather tiny Luxembourg plays a pivotal role, Xu Ping confirms. “What we are currently achieving here in Zhengzhou we intend to replicate in the Grand Duchy,” she announces. That’s only the beginning. Next on the agenda are similar mega projects in North and South America as well as Russia, she announces. The upcoming replicates will be organized, financed and managed similarly as with their forerunner in Zhengzhou.

Mrs Xu Ping follows Li Keqiang’s instructions-Export To China Today-Trade XL Limited

Mrs Xu Ping follows Li Keqiang’s instructions

Cargolux is BLC’s carrier of choice

Xu Ping also presents a solution as to how all the traded goods will get from the suppliers to the customers: “This is subject of individual customer decision, mostly depending on urgency and transport price,” she states. Although she adds to this that Cargolux is BLC’s preferred carrier when it comes to air transport. “They have a widespread global network, are growing, offer many frequencies to and from Zhengzhou and have an extensive road feeder network, linking Zhengzhou with the hinterlands.” The international accessibility will increase, once the projected freight carrier Cargolux China takes to the air in about a year and a half from now.


What Could You Export to China from Europe-Export to China Today-Trade XL Limited

What Could You Export to China from Europe

The products required can be classified into three main categories:

1.Bulk Products / Commodities.

Beef and other various animal products and associated byproducts like pig trotters etc.

Bulk Products and Commodites-Export To China Today-Trade XL Limted

Bulk Products and Commodites

Yes, you read it right. We import a lot of meat, from the rest of the world. For example we buy a lot of chicken and it’s byproducts from Brazil, and China is the #1 importer country of UK’s pork products.

You may think it’s since China is the one of biggest agriculture countries in the world. Why do we need to import so much meat?

Though China produces an immense amount of food annually, most is arable such as wheat and rice in order to feed the huge population in China. But as the rapidly expanding middle classes in China, no longer just want to feed themselves to survive, they also want to eat better. Consequently they demand a far greater diversity of food products with a higher proportion of animal based foods, meat products, by comparison, are cheaper in Europe

Other bulk products like Oil, Ore and etc are also needed in China.

Gasoline Station-Export to China Today-Trade XL Limited

Gasoline Station

2.Well known branded products

Products such as Aptamil, Cow&Gate and Firso with some well-known Breakfast Cereals and many other famous branded products are favored.

Well Known Branded Products-Export To China Today-Trade XL Limited

Well Known Branded Products

Although we have many domestic brands equivalent to these, these have a very short history compared to the well-known global brands (We barely had enough food to support the population before the 1970s, and no one could afford such things like milk powder at that time. This was true for a vast majority of the population) Therefore, Chinese consumers tend to trust these well-known branded products even when prices compared to home brands are considerably higher. Because we believe these brands have been existing so many years, they must be far better than these newly founded brand in China.The consensus is that if a product has been in existence for many years then it will naturally be more flavorsome and wholesome.

A good example are breakfast cereals. It is only in recent years that the younger generation have started to experiment with breakfast cereals and the trend is growing. Since most domestic cereal factories in China were only founded a few years ago, their products leave a lot to be desired in terms of quality and taste. Compared to their competitors in Europe (who have a long history of development and production) and know how to make the best cereal in the world China has a long way to go to catch up.

In this sense, people tend to choose some well-known branded products from Europe. Because most people especially these middle classes, they care more about quality and taste rather than cheap price.

3. Local Prestigious Products

In the eyes of many Chinese consumers, they have a strong generalization towards some products and countries.

For instance, if you ask them which country has the best wine, most of them will say France without being able to tell you why, and most of them never drink wine nor can they tell the difference between some decent wines and cheap ones without seeing the brand label.

Local Prestigious Products-Export to China Today-Trade XL Limited

Local Prestigious Products

Consequently, when they buy wine, they tend to buy the ones from France.

Similarly, when you talk about Whiskey, they will automatically think about Scotland; when you talk about beer, they will think about Germany. And all these products are hotly demanded in China, because people have a preconception that these “best products” are the ones to have. There are other products in other categories needed in China, but these three types are the most common ones.

If you can think of other products which are quite popular in China. Please feel free to leave a comment.

Barcode for Imported Products-Export To China Today From Here-Trade XL Limited

UPC and EAN Country Codes

Buyers have raised questions about the barcode on imported products: what are they? What they are used for? What information can i get from these? And other questions.

Today we will use this blog to briefly talk about the Barcode on imported products.

Barcode on a Wine Bottle-Export To China Today From Here-Trade XL Limited

Barcode on a Wine Bottle

The biggest misunderstanding about the barcode is: you can tell the country of origin by the first 3 digits of the barcode. In fact these digits can only reveal where the products is registered instead of the place where the goods have been produced.

For instance, if a USA brand uses a Chinese factory for making its products, then the barcode on the products will start with 00-13 (Code for North America including USA and Canada); Or if a South Africa company imports wine from Chinese wine makers, then the barcode on the bottom will still show it’s a South Africa product with the barcode starting with 600.

So essentially, the first three digit of the barcode only show where this product is registered and accordingly this product should comply with the local product regulation and law.

What do all the numbers on the barcode represent?

Totally there are 13 digits on a barcode. The first 3 digits represents where the product is registered, and it’s decided by EAN(Internaxbnal Artick Numbenng Association), for example, 00-09 represent North America commodities, 489 represent HK commodities, 471 represent the commodities from Taiwan province of China; The following 4-5 digits is decided by the country where the product is registered. The next 4-5 digits are decided by the manufacturer itself. And the last digit is to verify the authentication of the whole barcode.

The following are the correspondence between the first 3 digit of EAN code to the country it represents:

000 – 019; 030 – 039; 060 – 139 USA and Canada
300 – 379 France
380 Bulgaria
383 Slovenia
385 Croatia
387 Bosnia and Herzegovina
400 – 440 Germany
450 – 459; 490 – 499 Japan
460 – 469 Russia
471 Taiwan province of China
474 Estonia
475 Latvia
476 Azerbaijan
477 Lithuania
478 Uzbekistan
479 Sri-Lanka
480 Philippines
481 Belarus
482 Ukraine
484 Moldova
485 Armenia
486 Georgia
487 Kazakhstan
489 Hong Kong
50 Great Britain
520 Greece
528 Lebanon
529 Cyprus
531 Macedonians
535 Malta
539 Ireland
54 Belgium and Luxembourg
560 Portugal
569 Iceland
57 Denmark
590 Poland
594 Romania
599 Hungary
600 – 601 South Africa
608 Bahrain
609 Mauritius
611 Morocco
613 Algeria
616 Kenya
619 Tunisia
621 Syria
622 Egypt
624 Libya
625 Jordan
626 Iran
627 Kuwait
628 Saudi-Arab
629 United Arab Emirates
640 – 649 Finland
690 – 695 China
700 – 709 Norway
729 Israels
730- 739 Sweden
740 – 745 Guatemala
746 Dominican Republic
750 Mexico
759 Venezuela
760 – 769 Switzerland
770 Colombia
773 Uruguay
775 Peru
777 Bolivia
779 Argentina
780 Chile
784 Paraguay
786 Ecuador
789 – 790 Brazil
800 – 839 Italy
840 – 849 Spain
850 Cuba
858 Slovakia
859 Czech Republic
860 Yugoslavia
867 North Korea
869 Turkey
870 – 879 Netherlands
880 South Korea
885 Thailand
888 Singapore
890 India
893 Vietnam
899 Indonesia
900 – 919 Austria
930 – 939 Australia
955 Malaysia
958 Macau

If you have any questions about EAN barcode, please contact us or simply leave a comment below.