China’s Canton Fair losing its lustre among export manufacturers and buyers who bemoan virtual forum
- The rise of the digital economy and e-commerce, coupled with mounting geopolitical tensions and the coronavirus pandemic, have diminished some expectations for the biannual event that begins on Thursday
- Chinese manufacturers, increasingly cautious about expanding operations amid global uncertainties, have scaled back plans for the long-running exhibition
The appeal of China’s Canton Fair is fading among the nation’s export manufacturers, as already-strong export orders and new worries about operating risks force them to re-evaluate the pros and cons of participating in the 10-day event that begins on Thursday.
The twice-a-year exhibition – held since 1957 – is the largest of its kind in China. It was long the epicentre of China’s export economy – a must-attend event for sellers and buyers alike. But the rise of the digital economy and e-commerce, coupled with mounting geopolitical tensions and the coronavirus pandemic, have taken the shine off the event.
As raw material costs soar and Chinese authorities tighten their controls over foreign trade transactions and payments, manufacturers are becoming increasingly cautious about expansion plans.
“We participate in the Canton Fair every year, and this year is no exception,” said Kevin Huang, who produces hardware in Guangdong for export. “But to be honest, we did not make any deals in last year’s two online sessions. So, we have even fewer expectations for this year’s fair.”
In previous years, the main reason that foreign buyers came to the Canton Fair was to interact [with sellers] on the spot, and then visit the factories to review real production capacity and quality
As it was in April and October last year, the fair will be held solely online due to the coronavirus pandemic. About 26,000 exhibitors are expected to participate in the virtual fair this month, showcasing more than 2.7 million products, including 340 international exhibitors from 28 foreign countries, Xu Bing, spokesman for the Canton Fair, said on Tuesday.