Chinese exporters upbeat as Canton Fair opens to foreign visitors for first time in 3 years

Chinese exporters expressed cautious optimism about the business outlook despite a slowing global economy and slack orders from Western countries as China’s largest trade expo allowed visitors to attend in person for the first time in three years.

Exporter Natalie Yang said she was eager to introduce foreign buyers to her products, a range of different vacuum cleaners, at the Canton Fair at the opening day on Saturday.

“After three years, people are finally out, and it feels like the atmosphere is bubbling,” said Yang from Shenzhen-based Jashen Technology, which designs and makes smart home appliances.

“I am optimistic about the outlook. At the very least, now that the borders have reopened, the distance between us and our foreign friends has been shortened, unlike in the past few years, it was difficult for me or them to come to the other country.”

The Canton Fair, which started in 1957, remains a key platform for Chinese exporters to showcase products even in the era of e-commerce.

Over the past three years visitors were only allowed to attend remotely, but this year, the government said more than 100,000 buyers from over 200 countries would attend the event in the southern city of Guangzhou in person.

The expo, which runs until May 5, is the largest trade event held in China since it relaxed its border restrictions and coronavirus curbs.

However, despite large crowds, exhibitors said on the first day, the number of foreign buyers is visibly less compared with pre-pandemic years.

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Qin Yurong, an exporter of TV antennas to Southeast Asia, said she had invited many clients but some could not make it due to the slow visa process.

“We are still cautiously optimistic,” she said, adding that business was up by more than 10 per cent in the first quarter compared with the same period last year.

“It’s hard to predict how many deals can be closed this year, but it’s bound to be better than the past three years as borders are reopened.”

The role of Canton Fair has evolved over the years. Exporters now attach less importance on the actual number of deals closed, and see the fair as a platform to make connections and gain exposure.

“Many buyers won’t immediately place orders at the Canton Fair nowadays, compared with the 1980s and 1990s, when the Canton Fair was exceptionally efficient and many orders were settled at the scene,” said an exporter with Shanghai Jiefeng company, a water heater manufacturer based in Shunde, Guangdong.

“Now the buyers will come and add us on WeChat, then continue browsing. Even our existing clients will come and compare our products with other companies,” he said.

The company mainly focuses on Eastern European countries, including Russia.

The exporter said Shanghai Jiefeng had bucked the trend during the pandemic and had not suffered major losses as result of Russia’s invasion of Ukraine because orders that used to go to German companies are now going to Chinese firms.

An employee of Shenzhen CHK, which exports electronic handmixers to the Middle East and Southeast Asia, said the company barely received any orders in the past few years due to the pandemic, and she was pleased to see a pickup this year.

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“So far our orders are saturated,” she said.

Data released on Thursday showed robust Chinese export growth in March, up 14.8 per cent from a year earlier to US$315.59 billion, ending a run of five consecutive months of declines.

The surge was mainly driven by a sharp increase in shipments to the Association of Southeast Asian Nations (Asean), China’s largest trade partner, which rose by 35.4 per cent, year-on-year.