CANTON FAIR: Tariff Uncertainties and Buyer Trends from the US and EU
The epitome of China’s trade landscape, the Canton Fair unfolds concerns among exporters as tariff uncertainties and geopolitical tensions lead to dwindling attendance from EU and US buyers. Observations by JASON XU from Sidite Energy reveal a significant decrease in foreign interest, particularly from affluent regions, impacting prospects for Chinese manufacturers.
Exporters Face Challenges Amid Declining Foreign Interest
With a preregistration total of approximately 130,000 overseas buyers, the Canton Fair has seen a dip in European and American participation by 18.1%. In contrast, countries involved in China's Belt and Road Initiative surged ahead with a 69.7% representation. This shift has prompted much concern among exporters reliant on high-margin international clients.
The Role of Geopolitical Factors
- Tariff uncertainties and Russian airspace closures limit EU and US buyer engagement.
- Exporters like CAO YAOXIN from Guangdong Homa Appliances point to Latin America as the fastest-growing market opportunity.
- Despite challenges, new contacts emerged primarily from non-Western countries.
Exploring Growth Markets
According to reports by Deloitte, from 2018 to 2023, Chinese exports towards Asean, the Middle East, and Latin America maintained impressive compound annual growth rates surpassing 10%. Yet, exporters voiced concerns over spending power amidst these shifting markets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.