Chinese exporters brave trade tensions by exploring new global markets

BEIJING, CHINA: Chinese exporters are actively searching for new opportunities in global markets due to the ongoing trade conflict with the United States. A crucial avenue for these exporters is trade fairs, where they can display their products and establish sales channels to mitigate the effects of tariffs, aiming to discover alternatives to their traditional market in the US.

Among the various trade fairs, two significant events—the Canton Fair and the China International Consumer Products Expo (CICPE)—stand out as vital platforms for businesses. This year’s Canton Fair, held in Guangzhou, Guangdong Province, has attracted considerable interest from Chinese exporters eager to forge new business connections in non-traditional markets.

Exhibitor Tang Shousheng expressed optimism about expanding markets beyond the US, highlighting a particular product with advanced features that has drawn interest from potential clients in Poland and the Netherlands looking to secure exclusive distribution agreements.

In addition to expanding sales, Chinese exporters are also investing in overseas manufacturing facilities to bolster their global footprint. Huang Shuyu, another exhibitor, stated plans to invest 10 million yuan (approximately 1.37 million US dollars) in building factories abroad. They have already identified local suppliers for essential components such as plastics and packaging materials.

Chinese trade fair fails to woo in exporters

The Canton Fair is expected to see participation from around 31,000 companies, an increase of nearly 900 compared to the previous year. Similarly, at the recently concluded CICPE, many exporters focused on diversifying their brands and supply chains to maintain resilience amidst a volatile trade landscape. Some businesses are even launching proprietary brands targeted at specific international markets to increase their domestic market share.

Exhibitor Ran Yan noted success with their own brands in the Russian market, while Li Rongsheng underscored their commitment to global expansion despite trade disruptions, stating that they have not wavered in their overarching brand strategy.

The trade tensions are significant, with the US imposing tariffs exceeding 145 percent on Chinese goods entering the country. In March, there was a notable 12.4 percent increase in China’s exports year-on-year, as companies scrambled to ship products before anticipated tariff hikes, though analysts predict considerable challenges ahead.