After the US Trump administration imposed “reciprocal tariffs”, the throughput of goods at Chinese ports has plummeted. The China Import and Export Fair (Canton Fair), which opened in Guangzhou yesterday (April 15), also had a gloomy atmosphere. Experts say that the Canton Fair is desolate due to the freezing of China’s export discourse, and the current state of port freight is like “breathing stopped” along the export chain.
Following two rounds of retaliatory tariffs, the US has levied 145% tariffs on most Chinese imports, while China has imposed 125% tariffs on most US imports.
Under the shadow of the US-China tariff war, the 137th Canton Fair opened on April 15 and will continue in three phases until May 5.
The Epoch Times reported yesterday that there is a sense of pessimism in the Chinese industry, fearing that trade shows for exports are turning into domestic market exhibitions. Many businesses have expressed that participating in the fair is to maintain visibility, with little hope of developing new customers, mostly relying on “luck”.
A furniture business owner from Fujian told The Epoch Times that the economy has been tough in recent years, with last month’s furniture exhibition in Shenzhen already bleak. They operate in the traditional export model, targeting the European and American markets, which have been greatly impacted by the decline in foreign trade. They are prepared to “sit on the cold bench for five days” in the second phase of the fair.
According to Reuters, many Chinese companies at the fair have reported that American orders are either postponed or cancelled after President Trump announced a 145% tariff on Chinese goods earlier this month. Some companies even described the American market as “frozen”, stating that “it is a matter of survival for the company, as 60% to 70% of our business is with American customers”.
The United States is the world’s largest sales market, purchasing over $400 billion worth of goods from China annually, a market that no other country can rival.
American economist David Huang stated that the Canton Fair is now very quiet, indicating that China’s authority in exporting goods has been frozen. The fair has always been a platform for China to showcase its exports, and it has been crucial for China’s rapid development since joining the WTO. However, the Canton Fair has now become a place for exhibitors from non-America, non-European countries to seek opportunities.
“In the past, China determined export pricing, holding the position of the world’s factory. Now it has become a buyer’s market. Europe and America are the largest purchasers, becoming the ultimate decision-makers in global export discourse.”
Huang mentioned that the somber atmosphere of the Canton Fair symbolizes a shift in China’s economic prospects towards pessimism, reflecting the industry’s diminishing trust and unmet expectations for the future economy.
China expert Wang He told The Epoch Times that in recent years, China has been engaging in low-priced dumping, which has irked countries worldwide. With the US market collapsing, where will China’s massive volume of goods be sold to? Everyone is anxious and vigilant, leaving little room for the Canton Fair.
Also on April 15, data released by the Chinese Ministry of Transport showed that from April 7 to 13, the throughput of goods at Chinese ports decreased by 9.7% compared to the previous week, reaching 244 million tons, significantly higher than the 0.88% decrease a week before President Trump first announced the reciprocal tariff plan. Container throughput also decreased by 6.1%, reversing the 1.9% increase from a week prior.
The Wall Street Journal reported that the above data indicates a significant decline in port activities in China, suggesting that President Trump’s tariff war against China has already severely harmed Chinese exports to the US.
According to Caixin’s report, as early as April 10, Shanghai Yangshan and Waigaoqiao port areas had hardly seen any freighters heading to the US. A few days earlier, these docks were still bustling with activity, with many container ships rushing from the US to complete loading and shipping before the new tariffs were implemented. According to on-site COSCO Shipping personnel, containers that missed the last shipping schedule are currently piling up in yards, with many owners processing customs clearance for returns.
David Huang stated to The Epoch Times that the sharp decrease in port throughput is like the “breathing stop” of China’s export chain’s physical elements. The flow of capital and goods has been disrupted, which is not just a simple logistics adjustment. US tariffs have forced a reduction in China’s export scale, exiting the high value-added, high-profit European and American markets, shifting towards primarily Asian and African countries with limited consumption power. China’s transshipment trade has also been restricted.
“China’s position as the world’s factory is nowhere near its past glory. With the halt in port logistics, factory production cuts, employment shrinkage, and downgrading consumption, economic activities within China are rapidly freezing.”
Wang He expressed to The Epoch Times that China’s exports to the US amount to billions of dollars, about one-seventh of China’s total exports. Currently, goods simply cannot be shipped out, a situation unseen since Nixon’s visit to China in 1972. “Even after the sanctions against the CCP following the events of June 4, 1989, trade between China and the US didn’t face such circumstances.”
Wang explained that China also has indirect exports to the US. “Now Trump’s reciprocal tariffs are actually forcing all countries to take sides, either standing with the US or with the Chinese Communist Party. If the CCP uses you as a third party to sell goods to the US, I will impose tariffs on you as well, so China’s indirect trade with the US will also suffer a heavy blow.”
Wang stated that in the tariff war between China and the US, there were two illusions: one was the illusion of internal turmoil in the US, which did not materialize, and the second was Trump’s highest global tariffs that would make other countries turn against the US, while over 70 countries globally negotiated with the US, leaving only China against the US. Therefore, both of these illusions have been shattered. Continuing the tariff war will have a much more detrimental impact on the Chinese economy than on the US economy.