On May 5th, Guangzhou Meizhou Island, the 125th China Import and Export Fair (Canton Fair) came to an end. In 15 days, among the 60,651 booths of 1.185 million square meters, thousands of “Made in China” leveraged the “China’s First Exhibition” to embrace the world and draw a meticulously-painted and interconnected meticulous painting. As China’s “window” and “barometer” of foreign trade, the Canton Fair condenses the history of China’s foreign trade development and reflects the rise and transformation of the economy in the past 70 years.
The feedback on the effect of the exhibition is not the same. What are the major trends behind the officially released data? Is it good to do foreign trade?
Key data 1: double drop
The overseas buyers of the 125th Canton Fair attended 195,454 people from 213 countries and regions, down 3.88% from the same period in the spring of 2018 (the same below).
The cumulative export turnover of the Canton Fair was 1995.24 billion yuan (US$29.73 billion), down 1.1% from the spring of 2018.
This year’s Spring Fair continued the situation of the 124th session. Both the buyers and the export turnover reached a slight decline. After the 119th implementation of the “stop falling” in 2016, the Canton Fair buyers and exporters experienced up to 5 years. The “double growth” of the session.
Xu Bing, spokesperson of the Canton Fair and deputy director of the China Foreign Trade Center, clearly pointed out at the press conference that the domestic and international environment facing China’s foreign trade development this year is still severe and complicated, with unstable and uncertain factors increasing, and exports are facing downward pressure.
Another noteworthy data is:
Among the transaction orders, the ratio of short to medium orders was high, and the proportion of long orders was still low. Short orders within 3 months accounted for 42.3%, 33.4 months for single orders accounted for 33.4%, and long-term orders for more than 6 months accounted for 24.3%.
This also proves that the “unstable, uncertain” factors make buyers choose to stay on the move and not make long orders.
On May 5, Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, also said that behind this is the combination of multiple factors such as sluggish global market demand and Sino-US trade friction. For the government and enterprises, it is imperative to make further efforts in new markets and new products, create new space, reshape new advantages, and not passively wait for some objective factors to improve.
The voice has just fallen. On May 6th, there have been new changes in Sino-US economic and trade consultations that have already touched the screen of foreign traders. The exchange rate has also fluctuated greatly. There is no doubt that the overall situation of foreign trade this year is not optimistic.
Key data 2: Belt and Road
The number of buyers from countries and regions along the “Belt and Road” reached 88,009, accounting for 45.03%, up 0.5 percentage points year-on-year, and the situation was significantly better than the overall situation.
The export value of 64 countries along the “Belt and Road” was US$10.63 billion, an increase of 9.9%, accounting for 35.8% of the total turnover.
Looking further, ASEAN buyers increased by 4.79% year-on-year, with Thailand, Malaysia, Vietnam, Singapore and Cambodia all growing significantly, with growth rates of 10.75%, 9.08%, 23.71%, 4.4% and 8.83%, respectively.
At the same time, we must also see that although the export to the “Belt and Road” region is growing rapidly, the base is still not as good as traditional trading partners such as Europe and the United States.
According to the total foreign trade data of 2018, China’s exports of goods to the United States accounted for the highest proportion of total exports, reaching 19.2%, an increase of 8.6% year-on-year;
Exports to the EU accounted for 16.4%, an increase of 7.0%;
The increase in exports to ASEAN is very beautiful, reaching 11.3%, accounting for 12.8%.
Other major trading partners are ranked Hong Kong, Japan, Korea, India, Taiwan, Russia and Brazil.
Key Data 3: Buyers change blood
The number of new buyers was 82,375, accounting for 42.15% of the total number, an increase of 0.64 percentage points year-on-year. There are 47,588 old buyers who will be more than 10 times.
Many old Guangjiao have the impression that the Canton Fair is basically an old face, and it is difficult to develop new buyers. The official data of the above group also shows that the buyer’s blood transfusion rate is 42%.
Another noteworthy point is that new buyers from countries and regions along the “Belt and Road” accounted for 52.68% of the total number of new buyers, up nearly 1% year-on-year. This means that more than 50% of the 40% of new buyers come from the “Belt and Road”.
The number of buyers from all continents is:
110,172 people in Asia, accounting for 56.37%;
33075 people in Europe, accounting for 16.92%;
31,143 people in the Americas, accounting for 15.93%;
14492 people in Africa, accounting for 7.67%;
6072 in Oceania, accounting for 3.11%.
The top 10 countries and regions are: Hong Kong, China, India, the United States, South Korea, Thailand, Russia, Malaysia, Taiwan, Japan, Australia. Buyers from South Korea, Thailand, Russia, Malaysia, Japan, Vietnam, Brazil, Bangladesh and other countries have seen significant growth.
Is there any market that you are developing?
Key Data 4: Advantage Products
Among the buyers, 40.14% of electronics and home appliances, 32.63% of consumer goods, 28.7% of home decorations, 28.18% of gifts, and 26.35% of textiles and clothing.
In the export transaction, mechanical and electrical goods still ranked first. The turnover of mechanical and electrical goods was 16.03 billion US dollars, accounting for 53.9% of the total turnover; the turnover of light industrial products was 7.61 billion US dollars, accounting for 25.6% of the total turnover; the turnover of textile and apparel was 1.62 billion US dollars, accounting for 5.4% of the total turnover.
In addition, the product update rate of this year’s Canton Fair is more than 30%. Exhibitors with independent intellectual property rights, independent brands and independent marketing networks and exhibiting products with high-tech content, high added value and green and low carbon have increased significantly. The turnover of the brand exhibition area of 20% booth reached 28.8% of the total turnover.
As Xu Bingtian, spokesperson for the Canton Fair, said that in an environment where the foreign trade environment is more complicated and severe, the exhibitors have made positive progress in high-quality development, and new advantages in international competition are accelerating.