Chinese exporters are maintaining a positive outlook for the year, undeterred by concerns surrounding overcapacity allegations from the United States and the European Union, and the potential trade restrictions looming ahead.
The optimism was palpable at the latest session of the Canton Fair, a biannual event held since 1957 that serves as a key indicator of the state of Chinese exports.
The upbeat atmosphere at the fair, which commenced on Monday, can be attributed to the continued global demand for products facilitating the transition to green technology. This sentiment was echoed by the increased attendance, with a notable surge in overseas buyers.
Organizers reported a turnout of more than 87,800 overseas buyers and approximately 28,600 Chinese exhibitors, with 91% representing the private sector, during the first two days of the event. This marked a significant 21.8% increase in overseas participants compared to the previous session in November.
Steven Selikoff, an American importer in search of consumer electronics and green products, expressed his satisfaction with the fair’s emphasis on green technology. Despite concerns raised by US Treasury Secretary Janet Yellen during her recent visit regarding China’s industrial overcapacity in new energy sectors, Selikoff remained undeterred, emphasizing the importance of business over politics.
The Canton Fair saw a notable increase in the number of US importers, with a rise of over 20% from the autumn session. Additionally, importers from countries engaged in the Regional Comprehensive Economic Partnership trade pact and the Middle East increased by 15.5% and 24.7%, respectively.
Ella Zheng, sales director of Skytimes, highlighted the positive market sentiment, citing significant business growth expectations for her company. Zheng noted increased demand and expressed optimism about doubling deals during the current session.
Despite geopolitical complexities impacting logistics and payment methods, Chinese exporters remain agile in responding to changes. Chen Lijun, sales manager of Hebei Nonferrous Metals, noted heightened demand from Europe and the US and anticipated orders to mitigate risks of potential tariffs and trade restrictions.
The National Bureau of Statistics reported a significant uptick in new energy car production and solar panel output in China. This growth underscores China’s commitment to clean energy initiatives and its prominent position in global production.
Buyers like Tony Ferris from Australia lauded China’s progress in clean energy, expressing confidence in the transition from fossil fuels. As Chinese producers face increased competition, prices are expected to decrease, offering benefits to overseas buyers.
Jack Perry, chairman of the 48 Group Club, emphasized the opportunity for businesses to thrive amid overcapacity, anticipating cheaper products as a result.
Karl Xu, deputy general manager of Zhejiang Times Solar Technology Co., echoed the sentiment, highlighting China’s indispensable role in providing high-quality, low-priced PV products to facilitate global energy transitions.