Initial Canton Fair Results Vary as Chinese Gov't Hones Export Policy
Miao Qi
DATE:  Apr 24 2023
/ SOURCE:  Yicai
Initial Canton Fair Results Vary as Chinese Gov't Hones Export Policy Initial Canton Fair Results Vary as Chinese Gov't Hones Export Policy

(Yicai Global) April 24 -- Chinese companies report mixed results of the first part of the latest Canton Fair, the country's biggest trade fair, while the government is stepping up its foreign trade policy support.

Firms such as Zhonghui Lvjian Mobile Housing Technology and Fusite Laser Technology recorded a promising volume of orders but others such as Rollmax Shutter Component did not, Yicai Global learned as the first phase of the 133rd China Import and Export Fair ended on April 19.

Some 66,000 overseas purchasers participated in the first phase of the fair in Guangzhou, resulting in USD12.8 billion in exports, according to Shu Jueting, spokeswoman of the commerce ministry.

Demand has yet to return to pre-pandemic levels. The State Council, China's cabinet, issued a new round of foreign trade measures yesterday to promote cross-border e-commerce recovery and to improve the business environment, including the protection of intellectual property rights.

Some firms managed to break records. Ye Yikai, chairman of Guangdong province-based modular house builder Zhonghui Lvjian, said that the company inked a record-high sum of contracts worth CNY35 million (USD5.1 million) with customers from 29 nations. The firm brought their main products container-built mobile houses to the venue for visiting, did live-streaming and posted video on overseas platforms to attract shoppers abroad. 

Xu Zhangang, general manager of Liaocheng-based laser engraving machine manufacturer Fusite Laser, said that the firm's workers filmed live-streaming shows six hours per day on Alibaba’s international marketplace to reach thousands of viewers.

Fusite Laser's business grew by more than 30 percent every year during the Covid-19 pandemic and a similar trend will continue this year, Xu said, adding that the schedule of the firm's plant is set beyond June.

Not everyone is as lucky. "The market is still misty and the vast majority of customers are now holding a wait-and-see attitude and retailers’ inventories have not yet greatly changed," according to an executive in charge of a Ningbo-headquartered maker of small home appliances. The firm's export orders, which were relatively stable during the pandemic years, dropped slightly during the first quarter.

Ding Yandong, general manager of Rollmax, said that the fair performance has been unsatisfactory for the Ningbo-based maker of roller shutter parts. Part of the reason is the timing of Ramadan as the Middle East is an important market for Rollmax.

"None of the seven to eight customers have placed their orders so far," Ding said, adding that the delay could cause operational and shipping pressures later down the line.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Canton Fair,Export