The 133rd Canton Fair has witnessed a significant rebound in foreign attendance, particularly in the new energy vehicle and smart mobility sectors. This surge marked a departure from recent years and energized exhibitors with optimism for China’s export outlook.
Among the four halls of the exhibition center, the one showcasing new energy vehicles and smart mobility was exceptionally crowded. Booths were packed with buyers from various countries and territories, leading many Chinese attendees to wonder about the sudden influx of foreign visitors.
Interestingly, some overseas attendees acknowledged the reported concerns in the West regarding China’s overcapacity in the new energy sector, but they could not resist the allure of firsthand experience. “I finally had hands-on experience with Chinese electric vehicles. There are so many brands and models, and the prices are very reasonable. I’m impressed,” remarked a foreign importer.
The sheer number of foreign attendees brought forth a noticeable change in the fair’s atmosphere. In previous years, exporters often waited for potential clients, but this year, they found themselves in high demand. “We had to wait for guests and proactively approach attendees in the past. Now, it’s the other way around. They are lining up to talk to us,” said one exporter.
The biannual Canton Fair, held every year since 1957, serves as a barometer for China’s exports and reflects its advancement in the industrial chain. Over the years, the fair has expanded from 160,000 square meters of indoor exhibition space in 2008, featuring mainly labor-intensive industries and low-end products, to 1.55 million square meters today. Now, the fair showcases not only traditional manufacturing goods but also cutting-edge electronics, new energy vehicles, and other green products.
A social media video by an American buyer capturing a BYD-branded electric vehicle priced at $9,000 went viral, highlighting the affordability of Chinese electric cars. Wang Yunlong, the public affairs director of Aion, a Chinese electric vehicle manufacturer, emphasized the impact of the fair in introducing Chinese new energy vehicles to the world. “The experience, coupled with price comparisons, is the most convincing,” said Wang. Wang also mentioned the influx of potential clients from Southeast Asia, South America, and Europe visiting their factories.
In contrast, manufacturers of traditional goods such as home appliances expressed concerns about the declining number of European and American customers in recent years. They noted that the purchasing power of new customers from emerging markets was insufficient to offset the loss.
Despite the overall positive sentiment, the final transaction value of this year’s fair remains uncertain. Organizers reported around 198,000 overseas buyers attended the last session in November 2022, representing a 6.4% increase compared to pre-pandemic levels in 2019. Export deals worth $22.3 billion were signed, a modest 2.8% rise from last year’s spring session but still falling $7 billion short of the 2019 pre-Covid figure.
The heavy rainfall expected in Guangzhou over the next two weeks could impact the fair’s activities, but organizers and exporters hope it will not dampen the spirits of overseas buyers who have brought a ray of hope for China’s economic recovery in 2023.
