The China Import and Export Fair, known as the Canton Fair, is set to take place from April 21 to May 5. This is China's largest international trade fair. It is expected to draw 2,00,000 international buyers, up from more than 1,80,000 in the autumn session when there was a drop-off in numbers. The biannual event is held in the shadow of recent sharp export declines. So orders will at best be stable.
Buyers have lowered expectations about signing deals at the Canton fair, largely due to low European demand and a different sourcing model by US companies. US firms make 80 per cent of their orders through agencies. First quarter orders were slashed because of political turmoil in export destinations. China’s business in Thailand and Ukraine was hit by the ongoing strike and political upheaval.
Chinese exports unexpectedly fell 6.6 per cent year-on-year in March from a year earlier, following an 18.1 per cent slide in February. Imports fell by the most in 13 months. Several factors may add to the uncertainty, including growing international trade friction and China's drifting away from lower value-added items such as textile production, which may erode its bulky trade base in the short run.
However there are grounds for optimism. The worldwide economic recovery and optimized product lines have helped strengthen Chinese sellers' core competencies. A weaker yuan is also considered an effective stimulus to exports.
www.cantonfair.net/
