This month, the biannual Canton Trade Fair commenced amid uncertainty, kicking off mere weeks after US President Donald Trump designated April 2 as “Liberation Day” and initiated a trade conflict.
On the same day the fair commenced, the White House announced that China would be subject to tariffs as high as 245 percent in response to their imposition of elevated duties on American products.
One could easily assume that under these circumstances—during a full-scale trade war—the atmosphere at such an event might appear grim, with numerous cancellations expected as typical. However, this assumption would prove incorrect.
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Initial reports following the conclusion of the first phase over the weekend indicated a significant rise in participation from international purchasers.
According to state-run media, the first stage of the event, which showcased China’s cutting-edge manufacturing sector, came to an end with participation from 148,585 international purchasers across 216 countries and territories. This represents a 20.2 percent rise compared to the same point during the last edition.
As two additional stages are scheduled to continue running until May 5, predicting the ultimate attendance numbers seems uncertain. However, the event looks poised to surpass the previous edition—a remarkable achievement given the ongoing trade dispute.
Deals with buyers from the United States are obviously few and far between. One electronics exhibitor said its US distributors were either not placing orders, or in fact ordering but telling it not to ship the items.
Suppliers are wisely waiting for the two countries to negotiate, and to see where tariff levels on different products ultimately fall.
But the rest of the world still appears to be interested in China’s goods – a positive sign for Chinese exports that have been bracing for a shock from the trade showdown.
Many attendees hail from the Middle East, Africa, Latin America, Southeast Asia – Belt and Road Initiative countries.
This tendency would reflect the identical demographic changes — moving away from the US and Europe and toward the Global South — observed during the previous session in autumn.
This change also highlights shifts in China’s export dynamics—prior to the intensification of the trade conflict, the proportion of goods traded directly with the U.S. had begun decreasing. Over time, China has grown increasingly less reliant on the American marketplace, and this shift is underscored by the exhibition.
Strong participation in the fair is another sign that China’s supremacy across the supply chain continues to be significant for merchants globally.
Nations that are developing their industries depend on China both for completed goods as well as parts and basic resources.
The trade war initiated by the United States, which stands as an obvious yet often unaddressed issue at the exposition centers, is certain to hinder both China and the worldwide economy. Nonetheless, the nation’s strength and its pivotal position within international commerce and production are prominently evident.
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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
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