Chinese cannot be allowed to compete unfairly with locals- Cromwell Smith
Smith aka Edju En ka, along with Vice President of Business at the BVI Chamber of Commerce and Hotels Association (BVICCHA) Shaina M. Smith, were speaking on the topic: Chinese investment in the territory, from a trade and marketing perspective, on Thursday January 12, 2017.
“If they are selling us goods, we want to sell them financial services and tourism, because that’s where the trade comes in. What we are saying, there needs to be a strategic plan of how we are going to diversify our market to attract additional income into the territory and still maintain our sovereignty, our business,” he said.
It was unearthed by this news site that the Chinese company China Communications Construction Company Ltd (CCCC), which has been given the contract to extend the runway at Terrence B. Lettsome Airport on Beef Islands, requested that they be allowed to set up a plant to mine their own rocks for the project.
VI needs to be top of their negotiation game
Shaina M. Smith noted that the territory needs to be at the top of their negotiation game when it comes to any trade deal or agreement that we are going to enter into with anybody, “that we are clear as far as what we will and will not do because we know how it is going to affect us short and long term.”
“To me, it is a similar perspective of why we have not allowed American franchises for a reason. It is the same thing, even if we pivot but we continue to do trade with America but we decided in certain areas we are not going to allow direct competition, especially unsure direct competition because people still are ordering online and are travelling to the US and even St. Thomas; so it is more that has to be said in terms of if we are looking at a relationship with Asian companies or with Asian business what exactly does that look like,” she reasoned.
“Is it about trade and we are doing more supply out of Asia? Because the products are better priced so therefore that affects our cost of living which is a good thing, in that if that is the case, as long as I am getting the same quality or better we are all for it.”
Communication is key
According to the host Cromwell Smith, communication with the people is crucial to understanding what the country is getting into.
“And again this is where communication with our government comes in because our government needs to keep us properly informed on whatever the trade deals that we negotiating so that we could know how to prepare ourselves and whether we can support that or not. Because ultimately we need to make the decision as the public as to how we are going to engage into trade with Asia,” he said.
Tourism or financial services can benefit
The outspoken host noted that he has been saying for a long time the need to not only diversify the VI’s economic offerings in regards to tourism and financial services but we need to be more aggressive into other markets.
“I could see how the airport could provide a quicker access if we could get planes coming directly from North America, directly into Beef Island from Asia, that would help in that regard.”
He also made reference to an article from the Caribbean Tourism Organisation a couple years ago, who projected that millions of Asians are going to be traveling to the western hemisphere by 2018.
“…And if we catch a one million of them we will be kicking, so we need to start looking into getting the market share from Asia. So it pleased me when the government opened an office in Asia and we are able to do a trade promotion forum. But we seem to be subjecting ourselves, to the view that if it ain't North America or Europe, it ain't no good; and there is something inherently wrong and bad about Asia.”
Last week, Permanent Secretary in the Premier’s Office Brodrick Penn was quoted as saying that considering the current financial climate in the territory, Premier Dr The Hon D. Orlando Smith led administration was going down the right course by welcoming Chinese investors and the VI should capitalise on that.
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https://qz.com/265577/why-almost-a-third-of-overseas-chinese-investments-fail/