China’s Belt and Road project may hurt Turkish exports: Olpak

BURDUR

China’s Belt and Road Initiative may have an adverse impact on Türkiye as Turkish companies could face significant losses in their European export markets, warns Nail Olpak, the president of the Foreign Economic Relations Board (DEİK).

China is seeking to have quick and fast access to a rich market, Olpak told a group of journalists in his hometown Burdur.

Currently, China reaches this rich market by sea, a ship goes from Shanghai to Amsterdam in 40-45 days, he noted.

“A truck departing from Gaziantep, one of the best-exporting provinces in Türkiye, reaches Amsterdam in three-four days, but when this trip from China is reduced to eight days, our logistics advantage, which we consider our 'my biggest advantage,' will disappear,” Olpak said.

“The trucks coming from China will not go back empty….We will face a serious loss in Europe, our biggest market,” he added.

“When we cheer the Belt and Road Initiative, we should be aware of what we are cheering about,” Olpak said, adding that DEİK has prepared two reports on this. “If we act wisely, we can turn this into an opportunity.”

China has become one of the largest trading partners of Türkiye, noted Olpak, but stressed that the trade balance between the two countries is in favor of China.

Olpak also called on the government to take some small additional steps to support exporters which should not run counter the fiscal discipline and the fight against inflation.

The government may increase FX support for exporters and ease the 2 percent cap imposed on growth in loans extended to small- and medium-sized companies, Olpak suggested.

Due to the adverse developments in the global economy and trade, Türkiye’s export performance in the period ahead may not be as strong as it was in the past years, according to Olpak.

“We do not see double-digit growth rates in exports,” he said.

Besides goods exports, Türkiye also has strength in other fields, such as contracting services, and those sectors should be supported, Olpak noted.

Turkish contractors undertook $31.5 billion worth of projects abroad in 2022, he added.

But Turkish contractors are facing problems accessing financing abroad and a system could be created to resolve this problem, according to Olpak.

Olpak also announced that the 15th edition of the Türkiye Investment Conference will be held in New York on Sept. 23-25.

President Recep Tayyip Erdoğan will attend the conference, organized by DEİK, he said.

On the first day of the event, Erdoğan at a round table meeting will meet with leading American businesspeople and executives of the Fortune 500 companies, according to Olpak.

On the second day of the conference, Finance Minister Mehmet Şimşek and Trade Minister Ömer Bolat will meet with fund managers.

On the final day of the event, Energy Minister Alparaslan Bayraktar and Industry Minister Fatih Kacır will hold talks with investors.