Oct. 18. 2005
Marubeni China Co., Ltd. (capital: 31 million dollars, 100% funded by Marubeni, located in Shanghai. Hereinafter, Marubeni China), a China-based holding company of Marubeni Corporation (hereinafter, Marubeni), acquired the rights for domestic marketing, export and import from the Chinese Ministry of Commerce, effective October 17.
China joined the WTO in December 2001. At that time, the country pledged to open its distribution markets to foreign companies within three years. Since then, China has promulgated a series of related laws and regulations. This has enabled a 100% foreign capital holding company to acquire the rights for domestic marketing, export and import. Marubeni China has made an application for the acquisition of these rights.
Traditionally, the management of a holding company has basically been limited to the handling of and consulting about raw materials and products related to investment and investors. The acquisition of rights of domestic marketing, export and import represents an opportunity for Marubeni China to deal in products with non-investors. The transactions of Marubeni China Co., Ltd. have extended significantly. As a result, the company can conduct business just like one would expect of a general trading company.
As a China-based holding company, Marubeni China Co., Ltd. will cooperate with the hade office of Marubeni and focus on investments and consulting in China. With headquarter functions all around China, the company intends to combine these functions and the function of a trader into an organic body.
Recently, Marubeni acquired a license to establish a general trading company, named Marubeni Beijing Trading Co., Ltd. in Beijing. Shanghai Baihong Trading Co., Ltd. is engaged in wholesale, export and import of consumer goods for Chinese and foreign retailers. Shanghai Baihong Trading was established in 2001 with Brilliance Group (then Shanghai Yibai Group), China’s biggest distribution group. Affiliates located in free trade zones are making applications to acquire the rights of domestic marketing, export and import.
Marubeni’s group companies acquire the rights of domestic marketing, export and import in China. This will lead to a system in which credit, physical distribution and the other functions of a trading company are provided to a variety of clients while a wide range of materials and products, including raw materials and consumer goods, can be dealt in.