VZCZCXRO2121
PP RUEHCN RUEHGH RUEHVC
DE RUEHBJ #6256/01 2670343
ZNR UUUUU ZZH
P 240343Z SEP 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 2143
INFO RUEHOO/CHINA POSTS COLLECTIVE
ISLAM/ISLAMIC COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RHEHNSC/NSC WASHDC
RUCPDOC/USDOC WASHDC

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