South China Morning Post economy desk reporter He Huifeng has been reporting on the semi-annual China Import and Export Fair in Guangzhou since the early 2000s. She recounts her experiences from the ongoing 135th session of China’s largest trade exhibition, widely known as the Canton Fair.
I have witnessed waves of highs and lows in export orders at the Canton Fair over the years, but this year, what hit me was the surprisingly strong return of foreign importers.
Even the heavy downpours, which are very rare in the spring in the southern manufacturing hub of Guangzhou, did little to dampen their desire to attend.
Among the four halls in the giant exhibition centre, the one featuring new energy vehicles and smart mobility displays has been the most crowded, which I have not seen in many years.
The booths were full of buyers from various countries and territories, with almost every Chinese attendee wondering: why are there so many foreigners this year?
More interestingly, some overseas attendees said that despite the reports in the West of the threats caused by China’s overcapacity in the new energy sector, they cannot resist the temptation to see how cheap and affordable the Chinese products are.
“To buy or not to buy. I finally had first-hand experience of Chinese electric vehicles – so many brands and models, and they are not expensive. Very impressive,” said a foreign importer.
Previously, we had to wait for guests and we had to reach out to attendees proactively, but now they are waiting in queues for us
Last year, when the Canton Fair fully resumed on-site participation as China reopened its borders after three years of restrictive zero-Covid controls, I was able to talk to exporters during their lunch break.
But this time, long and detailed talks are impossible as they are too busy.
“Previously, we had to wait for guests and we had to reach out to attendees proactively, but now they are waiting in queues for us,” said an exporter.
The biannual event, which has been held every year since 1957, is widely seen as a barometer for China’s exports, while it also serves as a mirror of its progress in moving up the ladder of the industrial chain.
Back in 2008, the fair provided 160,000 square metres (1.7 million sq ft) of indoor exhibition space, with labour-intensive industries and low-end industrial products, including construction materials, electronics, furniture and textiles the main themes.
US importers attend China’s Canton Fair in droves, despite trade curb threats
US importers attend China’s Canton Fair in droves, despite trade curb threats
Nowadays, the exhibition area has expanded to 1.55 million square metres (16.7 million sq ft), featuring not only traditional manufacturing goods, but also increasingly advanced electronics, new energy vehicles and other green products.
A short video clip also went viral after a female American buyer filmed a BYD-branded electric vehicle priced at US$9,000 (65,000 yuan). She was astonished at the incredibly low price of the car, which is banned in the United States.
Wang Yunlong, the public affairs director of Chinese electric vehicle maker Aion, said the fair offered a great opportunity for more foreign merchants to see Chinese new energy vehicles up close.
There have been many potential clients visiting our factories these days, from Southeast Asia, South America and Europe, one after another
“The experience, coupled with price comparisons, is the most convincing,” said Wang.
“An electric SUV costing about 150,000 yuan (US$20,700) outperforms foreign brands costing over US$50,000.
“There have been many potential clients visiting our factories these days, from Southeast Asia, South America and Europe, one after another.”
On the other hand, manufacturers of traditional goods, such as home appliances, lamented that the number of European and American customers has continued to fall in recent years.
And that the purchasing power of new customers from emerging markets, like Russia, the Middle East and South America, still cannot make up for the loss of orders.
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“They still cannot afford those high-end lighting products for the Western markets,” said an LED lighting trader who focuses on Western markets.
And despite the overall upbeat sentiment, it is still unclear what the final transaction value from the fair this year will be.
Organisers said around 198,000 overseas buyers attended the last session of the fair in November, up by 6.4 per cent from the pre-pandemic session in the autumn of 2019.
They signed export deals worth US$22.3 billion, representing a modest 2.8 per cent rise from the spring session in April and May last year, but it still fell short of US$7 billion from the pre-Covid year in 2019.
The heavy rains are set to continue to fall in Guangzhou for the next two weeks, but organisers and exports will hope it does not dampen the spirit of the overseas buyers who have brought a ray of sunshine to China’s hopes of an economic recovery this year.
Article was originally published from here
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