Chinese companies cool on annual CES Vegas tech show amid trade war and economic uncertainty
- The dip in Chinese exhibitors comes amid a 90-day truce in the months-long US-China trade war, which has seen billions of dollars of tariffs slapped on goods
- Although some Chinese companies are adopting a more cautious approach to CES in 2019, there will nevertheless be a sizeable presence
The annual CES consumer electronics trade show in Las Vegas – the biggest technology and consumer electronics exhibition in the world, with around 175,000 expected attendees and 4,000 exhibitors – will kick off this week with about 20 per cent fewer Chinese merchants.
However, it still marks a significant reversal for an event which has jokingly been referred to as the Chinese Electronics Show in recent years as big names such as Huawei Technologies and fleets of component suppliers from the Pearl River Delta region have flocked to the casino town to show off their latest wares.
“Chinese companies are concerned about tariffs from the trade war,” said Shaun Rein, managing director of Shanghai-based China Market Research Group. “Attending a show like CES is expensive, and with [US President] Trump’s rhetoric towards Chinese technology, companies in China are rethinking their strategy of investing in the US.”
A total of 1,211 Chinese companies have registered to be part of the trade show this year, according to the CES exhibitor directory as of January 4, compared to 1,751 companies from the US. The Chinese number is down about 20 per cent from a record 1,551 last year, according to statistics provided by CES organiser, the Consumer Technology Association (CTA).