Chinese Wholesale Market Creates Buzz in Havana

[El Presidente]

 

Chinese Wholesale Market Creates Buzz in Havana

Thursday, August 22, 2024 by Felix Ortiz

https://www.cubaheadlines.com/articles/287274

A new Chinese wholesale market in Havana has captured the attention of Cuban entrepreneurs with its extensive range of products and competitive prices. The China Import market is located at Manglar and Oquendo in Centro Habana, near the popular Cuatro Caminos market. This establishment has generated significant buzz on social media, where users have shared their impressions of the place.

The Facebook user "Cubano De Pura Cepa" celebrated the return of this type of commerce to Havana, highlighting that after nearly 60 years, the Chinese have reopened their businesses in the capital, offering a diverse selection that "has everything like a drugstore." Additionally, he noted that products can be purchased in national currency (MN) at the exchange rate of the day, which currently stands at 320 Cuban pesos per dollar. They will accept payments by transfer in MN and in MLC, but not at the moment, due to technical issues with payment platforms in  Cuba.

Another user, Lisandra Martín, expressed her surprise at the dollar pricing model, wondering what would happen if Micro, Small and Medium Enterprises (Mipymes) adopted this "daily exchange rate" system. She pointed out that the Chinese market uses a daily conversion to accept payments in MN, which could spark controversy if implemented in other Cuban businesses. This approach has reignited the debate over the legality of the informal market exchange rates and the restrictions imposed on the wholesale sector in the country.

Meanwhile, Yamir Macías Catalá emphasized that the Chinese market, located in a former SABATÉ detergent and soap factory, allows buyers to pay in MN at the current exchange rate, making it an attractive option for entrepreneurs but inaccessible for the average Cuban who continues to face a severe shortage of basic products. This market, which operates under different regulations than those imposed on Cuban entrepreneurs, highlights the disparities in resource access and the growing segmentation of commerce on the island.

In April, the Chinese wholesale company Nihao53, managed by Leke Holding Group, announced that it would consolidate its presence in Cuba. The plan was to expand its operations with state enterprises and local ventures. Nihao53 has over 15 years of commercial relations with Cuba and is currently one of the key suppliers in the island's market. They provide goods to private businesses, ranging from raw materials to advanced technology.