By Lucy Adautin
Exporters at China’s oldest and largest trade exhibition voiced concerns on Tuesday over the deepening trade war with the United States, as they turned their focus towards alternative markets.
The Canton Fair officially opened in the southern city of Guangzhou, attracting around 31,000 companies showcasing their products at 74,000 booths, according to state media reports.
Zhao Xianmei, marketing manager at a company specialising in massage chair design and production, said that 70% of the company’s orders stem from deals struck at the Canton Fair.
Nearly a third of products from Bella Intelligent Information Technology Company are exported to European nations and the United States.
“Due to the tariffs, some of our business activities have been suspended because of issues related to payments, exchange rates, and other factors,” Zhao explained. Nonetheless, she remained hopeful that the dispute would be short-lived.
“We don’t believe this situation will continue for long, as it’s unhealthy. So we are waiting, and we’re hopeful for a revival of the market in the future,” Zhao added.
Rising Trade Tensions
US President Donald Trump implemented sweeping tariffs on imported goods from nearly all global markets at the start of April.
Although several nations have tried to negotiate exceptions, Beijing retaliated by raising tariffs on American imports to 34%, mirroring the US move.
Washington then escalated matters by lifting its tariffs to 145%. China responded with a 125% tariff, which came into effect on Saturday.
Also present at the Canton Fair was Chigo, a manufacturer of air-conditioners and refrigerators, which has been exporting internationally since the 1990s. Today, Chigo’s products are sold in 180 countries and regions.
Sales manager Liao Shixing noted that, although the United States accounts for only a small portion of the company’s export market, the wide-ranging US tariffs targeting most countries are likely to have an impact. “We will be affected in the short term,” Liao admitted, adding that the firm is now exploring new markets to cushion the blow.
The Canton Fair, held twice a year in Guangzhou, runs until 5 May.
