THE HALAL NETWORK - NINGXIA REACHES OUT TO THE MUSLIM

UNCLAS SECTION 01 OF 02 BEIJING 006256 SIPDIS SIPDIS STATE FOR EAP/CM, NEA E.O. 12958: N/A TAGS: ECON ETRD PGOV SOCI CH SUBJECT: THE HALAL NETWORK - NINGXIA REACHES OUT TO THE MUSLIM WORLD REF: (A) BEIJING 5601 (B) BEIJING 5600 (C) BEIJING 5599 BEIJING 00006256 001.2 OF 002 SUMMARY -------------- ¶1. Emerging economic ties between Ningxia Province and Islamic countries suggest a broader potential for expanded commercial interaction between China's Muslims -- which likely exceed 20 million and may number as many as 100 million according to unofficial estimates -- and their brethren in the Middle East, Africa, and Southeast Asia. A recent Halal Food/Muslim Commodities Festival proved a significant draw for business people and diplomats from Islamic countries. According to Malaysian trade promotion officials, many in Malaysia see Muslim China as a great investment option because of the combination of a shared heritage and a booming economy, and they hope to expand awareness back home in the Chinese market by cooperating with the local halal industry on certification and trade initiatives. Also of note is assistance coming in to Ningxia from Islamic countries for education and poverty alleviation projects. END SUMMARY. TRAVEL TO NINGXIA -------------- ¶2. Econoff and Conoff traveled to Ningxia Hui Autonomous Region on August 15-18. Emboffs participated in the Second Ningxia International Halal Food and Muslim Commodities Festival (Halal Festival) and the Investment and Trade Fair in Yinchuan, the provincial capital, on August 15-16. DIVERSE ATTENDANCE FROM ACROSS THE MUSLIM WORLD -------------- -- ¶3. Approximately one-fourth of Ningxia Hui Autonomous Region's population is of Hui ethnicity, a minority group that is predominately Muslim. The Halal Festival is a government-organized trade fair, focusing on building trade ties and cooperation between Western China and other Muslim countries. Ningxia Acting Governor Wang Zhangwei served as director of the second annual festival, held on August 15-16, which attracted over 300 foreign visitors and representatives from 21 primarily Muslim diplomatic missions in China, including the Ambassadors of Jordan, Uganda, Guinea, Nigeria, and Algeria. ¶4. Foreign booths filled about half of the first floor of the Festival. The largest business contingents were from Thailand and Malaysia, both with over 100 attendees. The Thailand delegation was very well organized, with representatives from 28 halal food companies. Malaysia had representatives from the Halal Industry Development Corporation, the External Trade Development Corporation, and private business, including a 25-member group from the Malaysia Islamic Chamber of Commerce. Other countries, including Guinea, Yemen, Iran, Uganda, Jordan, and Bosnia and Herzegovina, had a lesser presence, with booths containing product or tourism promotional materials. ¶5. Several Ningxia-based Muslim companies spoke of plans to export and had prepared Arabic and English packaging and promotional materials. One tea company advertised that it has several customers in Russia and recently began exporting to Oman. Another company was run by an expatriate Egyptian, selling MP4 Koran players and other Muslim products. Companies selling halal/Muslim products also attended from other parts of China, the most numerous being from Xinjiang, Qinghai, Shanxi, and Gansu. THE CHINESE HALAL ECONOMY - AN AIRBORNE SILK ROAD? -------------- -------------- ¶6. A Malaysian seafood exporter said that currently most Malaysian food sales to China are to the prosperous coastal regions, but that halal food companies see China as an important emerging Muslim market. There are 90 million Muslims in China, he said. For a company from Malaysia with only 26 million people, it is significant, he said. (Note: According to official statistics, China has only 18 million Muslims, but estimates of the actual population range from 20 to 100 million. End Note.) ¶7. According to representatives from the Malaysia External Trade Development Corporation, many in Malaysia see Muslim China as a great investment option because of the combination of a shared heritage and a booming economy. Their organization hopes to expand awareness in the market by cooperating with the local halal industry on certification and trade issues. BEIJING 00006256 002.2 OF 002 ¶8. Malaysia is attempting to enhance its presence in the Chinese halal economy through cooperation on halal certification procedures, stated a representative of the Malaysian Halal Industry Development Corporation (HDC). The current Chinese halal certification procedure is very poor, he said, so products with halal labeling in China may not be accepted as such in Malaysia or other Muslim countries. On August 16, the HDC and the Ningxia government signed an agreement under which HDC will help Ningxia strengthen its certification procedures. ¶9. Infrastructure development may lead to increased export opportunities. In September a shipping company will begin direct cargo flights from Yinchuan Airport to Dubai, promoting it as the "Airborne Silk Road". A representative said that the initial shipments will primarily consist of frozen halal mutton and other meats. AID AND INVESTMENT FROM MUSLIM COUNTRIES -------------- ¶10. Emboffs also visited Liangtian, a town of 70,000 near Yinchuan. Most of the residents were relocated from southern Ningxia over the past 20 years as part of an anti-erosion resettlement project. The main street of the town is lined by new buildings built with Islamic features, and 90 percent of the town's population is Hui Muslim. ¶11. The Ningxia Muslims Charitable Association (NMCA),founded by two Hui brothers, has received aid from more affluent Muslim countries for Islamic projects. The Association's website is solely in Arabic, and the brothers displayed a clear enthusiasm for developing ties to the Middle East. ¶12. NMCA's newest project is the Ningxia Islamic Vocational School, funded in part by a grant from the Kuwait Religious Education Foundation. The boarding school, which will open in September 2007 with 150 local students, will offer classes in Arabic, English, computers, and business. The school will train students to serve as translators and businessmen in the Arabic-speaking world. ¶13. Near the school, a simple mosque and surrounding neighborhood of 40 housing compounds were built in 2004 by NMCA with a grant from the United Arab Emirates. Other projects unrelated to NMCA include the Ningxia Islamic College, which was built in the 1990s with funding from the Islamic Development Bank, and a Kuwait-sponsored display at Ningxia's Hui Ethnic Culture Garden. RANDT