YIWU, ZHEJIANG: China will construct a second Yiwu International Trade City, the world's biggest small-commodities hub, in Thailand.

The strategic move will make its South Eastern neighbour a re-export center and promote the country's small-goods exports in a global market.

With investment of 10 billion yuan (US$ 1.51 billion), construction will begin in Bangkok on Jan 18 at the China City Complex, a commercial and wholesale town similar to China's Yiwu, and will sell Chinese-made goods, including garments, ornaments and household items.

The commercial city will cover 700,000 square metres and is estimated to attract more than 70,000 commercial tenants from China.

The trade quota between Thailand and developed economies, including the EU and US, is much more than that of China, so Chinese-made goods could be re-exported from Thailand without such strict limitations as those imposed on Chinese exports.

Fueled by the new Free Trade Agreement (FTA) signed between China and the 10-member Association of Southeast Asian Nations (ASEAN) last year, the trade volume within the free-trade zone reached US$ 161 billion, registering a year-on-year increase of 50 percent, in the first seven months of 2010.

The trade volume between China and ASEAN countries is set to reach US$ 500 billion by 2015.

Since the FTA was established in January 2010, most goods traded between China and Asean countries have been subject to zero or very low tariffs, thus allowing a freer flow of capital, resources, technology and talents.

Source: The Nation