The China Import and Export Fair (Canton Fair), known as the barometer of China’s foreign trade, has seen a noticeable decrease in the number of attendees in the first phase. Many exhibitors have packed up early, prompting the organizers to issue a notice prohibiting early withdrawal from the exhibition, much to the dissatisfaction of participating enterprises.
The first phase of the Canton Fair, focusing on electronic appliances, industrial manufacturing, lighting, and hardware tools, concluded on April 19th. A participant from the lighting industry shared insights, mentioning that their booth was located at the double passageway of Hall C, with good foot traffic passing by, but actual visitors were limited. Clients from Southeast Asia and countries along the Belt and Road Initiative were prominent, with quite a few South American customers engaging in discussions.
According to official data, as of April 8th, nearly 170,000 overseas buyers had pre-registered, with “Belt and Road” countries accounting for 72%, BRICS countries 27.4%, Middle Eastern countries 14.3%, and European and American countries 10.5%. By April 14th, the number of pre-registered overseas buyers had exceeded 200,000.
Despite official promotional efforts emphasizing numbers, on-site attendance from clients showed a significant decrease. Feedback from exhibitors and on-site translators indicated observations like “less foot traffic compared to previous sessions”, “fewer European and American visitors, more from Asia, Africa, and Latin America,” and “a noticeable decrease in booth visitors by the third day of the fair.”
A participant from the lighting industry noted the absence of sign-in sheets at the venue, indicating that attending the Canton Fair was primarily for exposure purposes, as they would follow up with clients at their factories instead.
On the first day of the exhibition on April 15th, the Canton Fair Business Office issued a notice to trade delegations, stressing the need to utilize the full 5-day exhibition period and refrain from premature withdrawal or leaving booths unattended. Failure to comply would result in disqualification and reporting for early dismantling or removal of exhibit items before 6:00 pm on the fifth day of each phase.
On April 18th, exhibitors received another notice reiterating the prohibition on early withdrawal, specifying 6:00 pm on the fifth day as the designated dismantling time. Subsequently, a message was circulated allowing some flexibility in dismantling on the first phase based on actual visitor presence, permitting gradual dismantling after 12:00 pm on April 19th.
Karen, a foreign trader, attributed the significant impact of the ongoing tariff war between the US and China as the reason for reduced American participation in the Fair. She highlighted how previous editions of the fair were bustling with activity, generating substantial sales for companies primarily dependent on exports to the US market.
Karen recalled her company’s active participation in the Canton Fair twice a year for several years, emphasizing the critical role the fair played in securing orders and establishing partnerships globally. She outlined the arduous process of securing prime exhibition space, including costly secondary market transactions for booth acquisition.
Amid the downward trend in international trade, Karen expressed concerns over the adverse effects of the trade war on job security in export-oriented businesses, particularly those heavily reliant on the US market. She emphasized the challenges faced by companies in transitioning to alternative markets and the grim prospects of massive layoffs due to escalating tariffs and diminishing export opportunities.
In response to the challenging external trade environment, the Chinese Ministry of Commerce initiated discussions with various industry associations and retail giants to incentivize domestic sales conversion for foreign trade enterprises. Companies like JD.com pledged substantial procurement amounts for domestic products to facilitate a shift in their sales focus.
Karen underscored the urgency of addressing the economic downturn caused by the trade war and the internal market saturation in China, highlighting the impending crisis of widespread unemployment. While the impact on the US market was relatively limited due to diversified procurement sources, Chinese enterprises faced a pressing need to adapt to the changing global trade landscape and explore new business opportunities beyond traditional markets.
The escalation of the US-China trade war in early April 2025, with increased tariffs on both sides, highlighted the ripple effects on various industries, prompting companies to reevaluate their sourcing strategies and explore alternative production bases beyond mainland China.
The evolving trade dynamics, compounded by geopolitical tensions, underscored the urgent need for strategic realignment and diversification in global supply chains, as nations navigated the complexities of international trade negotiations and economic uncertainties.
Throughout the interview, Karen’s insights shed light on the evolving challenges and opportunities in the international trade landscape, emphasizing the imperative for businesses to adapt to the changing geopolitical and economic realities reshaping the global commerce ecosystem.