[Wang Hua]: That is to say, there are different players under the two trade modes. For the exchange trade between border residents, "border residents" are the players, while for the petty frontier trade, "enterprises" are the players. Right? 06/05/2014 9:38:0
[Ma Jun]: Yes. Strictly speaking, the border residents must be the citizens of China or those of the counterpart countries who hold Border Resident Certificates. In addition, when they engage in the exchange trade between border residents they must be the persons specified on the corresponding Border Resident Certificates, and they must not assign, lease or lend the Certificates to others. 06/05/2014 9:38:42
[Ma Jun]: The enterprises engaging in petty frontier trade must be the enterprises with the right to conduct petty frontier trade after obtaining the approval of the relevant boarder provinces or autonomous regions and completing the registration procedures with the State Council according to relevant provisions. The enterprises which have not completed the examination and approval procedures or registration procedures are not allowed to conduct the petty frontier trade. 06/05/2014 9:39:28
[Wang Hua]: I see. Mr. Ma, just now you mentioned that the exchange trade between border residents must be conducted within a certain area along the border line. What are the provinces in China where the exchange trade between border residents is carried out? 06/05/2014 9:40:46
[Ma Jun]: Currently, nine border provinces and autonomous regions in the country have approved in succession the establishment of 70 sites for exchange trade between border residents. Among them, the exchange trade between border residents of Guangxi Zhuang Autonomous Region and Yunnan Province has developed rapidly, and the volume of exchange trade between border residents accounts for about 20% of the total border trade volume of Guangxi and Yunnan respectively. 06/05/2014 9:41:01
[Ma Jun]: Many friends who have been to Yunnan Province are impressed by the local custom of "Gan Gai Zi". In the local dialect of Yunnan, "Gai Zi" means a fair, and "Gan Gai Zi" means going to the fair. Generally, the local people go to the fairs every five to seven days. In the border of Yunnan Province, many "Gai Zi" are actually the places for exchange trade between border residents. In addition, there are many other venues and sites for exchange trade between border residents, mainly located near the ports or the gates of port channels. 06/05/2014 9:41:15
[Ma Jun]: Currently, the exchange trade between border residents is available in the border areas governed by 16 local subordinate customs houses under the Kunming Customs District, namely, Ruili, Wanding, Mengding, Daluo, Tengchong, Mengla, Hekou, Jinshuihe, Tianbao, Banna, Zhangfeng, Yingjiang, Menglian, Nansan, Cangyuan, and Mengkang customs houses. 06/05/2014 9:43:09
[Wang Hua]: In terms of the data, the percentage of border trade, especially exchange trade between border residents, in the total trade volume is not great. Why do the State and Customs attach much importance on the development of border trade? 06/05/2014 9:44:29
[Ma Jun]: Well, to answer this, we have to talk about the national policy of "revitalizing border areas and enriching residents' lives". China has attached much importance to the development of border areas and the ethnic groups living there. At the Third Plenary Session of the 18th Central Committee of the Communist Party of China, it was decided to "accelerate the opening-up of border areas, and permit the implementation of special methods and policies in respects of personnel exchanges, processing and logistics, and tourism in key ports, cities and economic cooperation zones along the borderline". 06/05/2014 9:48:34
[Ma Jun]: In Yunnan Province, due to its geographical features, there have been customs in respects of border trade, intermarriage, and exchange trade with the neighboring countries such as Myanmar since ancient times. Moreover, border trade is one of the main driving forces for economic development in the border areas, and plays a positive role in promoting regional foreign trade and the development and opening-up of border areas. The exchange trade between border residents, in particular, brings direct benefits to the lives of border residents. Although the exchange trade between border residents is merely a small category under the supervision of the Customs, it is an important means for the border residents to get rid of poverty and become wealthy. Therefore, we have always attached much importance to it. 06/05/2014 9:48:40