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The Silk Road of Halal Market

2025-05-15
China will expand its economic cooperation with Arab countries in terms of halal economy by relying on its Muslim-majority Ningxia, Gansu and Xinjiang regions and its Silk Road roots.

China exports a wide range of products. Its manufacturing capacity is strong, its real estate industry is developing rapidly, its green energy sector is booming, and now its Halal food exports to the Muslim market are also growing rapidly.

The recently concluded China (Ningxia) International Investment and Trade Fair in Yinchuan, capital of the Ningxia Hui Autonomous Region, has revealed another area with huge potential: the Muslim market.

More than 900 companies, 254 from overseas, participated in the fair showcasing halal food, agricultural and related products, cashmere textiles, handicrafts and many others to potential investors and Chinese Muslim consumers.


Contactless Outlook: A Chinese Muslim sales assistant sells fried dough sticks at a halal food stall at the China (Ningxia) International Investment and Trade Fair in Yinchuan, Ningxia Hui Autonomous Region.
Malaysia is represented by about 30 companies and government agencies including the Halal Industry Development Corporation and the Kelantan Economic Development Corporation (KEDC).

Exhibitors from Malaysia showcased halal food and crafts – a national cottage industry, cocoa products and a halal centre park.

“We are bringing in our unique food and crafts in Kelantan for the first time at this fair,” said KEDC project and property manager Shah Abdul Kadir Mohamad.

“However, during Ramadan, we also participated in other exhibitions and took part in touring exhibitions in Urumqi and Guangzhou. We have built a network of customers and traders in China.”

He said the agency hopes to promote Kelantan in the China International Trade Expo (Zheng He Expo 2010), which will be held in Kota Bharu from November 21 to 26, through the participation of China

Chinese painter Liu Zaitian, a Muslim from Inner Mongolia, exhibited about 20 works depicting Islamic culture.

“The artwork mostly depicts my pilgrimage to Mecca,” he said.

“Through my work, I hope I can better play my part in promoting understanding between China and Arab and other Muslim countries.

"There are many cultural heritage buildings, including mosques in Saudi Arabia and China, and we should protect them."

China is leveraging Ningxia, its window on the Arab world. More than 36% of the population are Hui (Muslim), a majority ethnic minority in the region, which has a long history of trade with the Middle East dating back to the days of the Silk Road.

There are about 200,000 Muslims in China, most of whom live in Ningxia, Gansu and Xinjiang.

Li Rui, vice chairman of the Ningxia Hui Autonomous Region, said his government will become an important hub in western China, connecting the region with Arab and other Muslim countries.

To this end, the Chinese government, in cooperation with the vast majority of Arab countries, held the first China-Arab Economic and Trade Cooperation Forum on the basis of fairness.

"Both the forum and the fair are promoting the openness of this part of China to the vast majority of Arab countries," he said.

Yuan Jilin, director of the Ningxia Hui Autonomous Region Development and Reform Commission, said the development of China's west as a gateway to the Middle East will be included prominently in the 12th Five-Year Plan, China's future development blueprint.

"If you look at a world map, you'll find both Ningxia and Arab countries at the center of energy production. We have similar cultures and customs from the beginning of civilization," he said.

"China is a developing country. Opening up to the Middle East is a very important step in our development, and with our general trade and cultural cooperation having been built from the early stages we have a bright future."

Yuan said that in the future, China will explore energy development and carry out more energy-related projects with Arab countries.

Jordan's Minister of Planning and International Cooperation Jafar Hassan said trade between Arab countries and China will be diversified to include products other than cotton, food, cement and fertilizer, as well as more investments in high-tech sectors.

"In recent years, China has registered remarkable achievements and has become a role model for all of us. We believe that China and Arab countries have a strong political will to strengthen economic and trade relations and mutual investment," he said.

"We hope more Chinese companies will invest in high-tech projects, in addition to providing us with financial and technical assistance, to promote the development of infrastructure and energy in Arab countries."

Trade with China and Arab countries has grown from about US$20bil (RM62bil) many years ago to US$120bil (RM372bil) in 2008, with Ningxia's portion and contribution being around US$60mil (RM186mil).

Over the next five years, both sides will aim to lift trade volume by at least US200bil (RM620bil).

"So far, we have cooperated with Arab countries in trade, engineering contracting and labor services," said Ma Fu, director of the Ningxia Commerce Bureau.

"In the future, we will also focus on halal food, home appliances and commodity trade. We will guide more companies from Arab countries to invest in Ningxia."

Although Ningxia does not have the obstacles faced by its port and logistics industries, it is determined to transform the region into a trade hub like Yiwu in Zhejiang Province, which is China's most well-known small commodity circulation center.

“We will develop a trade and business center with Arab countries, as well as an industrial park for halal food and goods, with an investment of 2 billion yuan,” he said.

"Through these efforts, we will ensure that Arab merchants can buy or sell their goods at lower costs to make up for our lack of competitiveness compared to coastal areas."

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