China’s exporters optimistic as foreign buyers flock to see products at Canton Fair in Guangzhou

Chinese exporters are optimistic about an increase in clients and orders as the Canton Fair, a major trade event, commences. This optimism comes as China's economy, the world's second-largest, slowly recovers from a period of sluggishness. The Canton Fair, which opened on Sunday in Guangzhou, a southern Chinese city, has participants expressing that foreign buyers are more motivated. Lam Sing-tin, a Hong Kong-based trader, attributes this to the weak yuan, which has made Chinese products more attractive. He also notes that geopolitical factors are more relaxed than before, particularly in the new energy sectors. The Canton Fair, held semi-annually since 1957, is seen as a gauge for China's export market and the resilience of its supply chains. These have been challenged by weak external demand, trade tensions with the West, and the lingering effects of the pandemic. Jacob Thiessen, a buyer from Mexico, expressed that he would likely purchase more than he initially planned. He found that the quality and price of many products remained relatively stable, even compared to the pre-pandemic period. He also noted that the depreciation of the yuan against the dollar has made Chinese products more appealing. The fair saw over 50,000 foreign buyers from more than 200 countries on its first day. The event will continue until November 4. Organisers anticipate an 8. 6 per cent increase in US and Europe-based buyers from the spring session in May, and a 13. 8 per cent increase in foreign buyers from member countries of the Regional Comprehensive Economic Partnership, a China-backed trade bloc. Mark Lu, deputy general manager of Yueda Intelligent Agricultural Equipment, stated that the company is now focused on expanding into Russia, the US, South America and Europe. He highlighted that the rise of China's new energy sector has conferred an extra price advantage in lithium batteries and other components. He believes these cost advantages will be further expanded with the development of China's new energy industry. Lydia Zhu, vice-president of overseas marketing for Guangdong Xinbao Electrical Appliances Holdings, said they have invited about 500 clients to the fair from across the world, and most have confirmed their attendance. She estimates that more than 700 customers will visit their booth during the five-day event, with about 30 per cent from Europe and America. She noted that the willingness to purchase from European and American customers is increasing as their destocking has been carried out, and the demand for replenishment is becoming strong. China's export decline narrowed for the second consecutive month in September, indicating a slow recovery in external demand. Exports fell by 6. 2 per cent from the previous year after dropping 8. 8 per cent in August. Vice commerce minister Wang Shouwen held a discussion with multinational companies and foreign chambers of commerce, seeking their feedback on trade and operations. This was part of a broader effort to revive confidence in the Chinese market among foreign investors. Wang stated that China has a large market potential, a mature supply chain and a pool of tech talent, which will offer more opportunities for businesses to expand their presence. In traditional manufacturing, many Chinese exporters continue to lower prices to attract new orders and keep their factories running. Yang Feifei, a manufacturer of lighting products, expressed her hope to supply appliances to support reconstruction efforts in the wake of wars or natural disasters. She noted that Chinese suppliers have made significant efforts to retain buyers, taking risks and trying to extend payment terms.