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Business / Economy

Perfect storm hits Canton Fair

By Qiu Quanlin in Guangzhou (China Daily) Updated: 2014-05-06 09:43

Perfect storm hits Canton Fair

Foreign buyers interact with Chinese vendors at the 115th China Import and Export Fair in Guangzhou, Guangdong province. The number of overseas buyers declined 7.23 percent to about 188,000,according to Liu Jianjun, spokesman of the event. Zou Zhongpin / China Daily

Sellers urged to focus on branding, innovation amid decline in deals

A slow recovery in traditional markets and low demand from emerging economies combined to drive down deals signed at the 115th China Import and Export Fair, the nation's largest trade event, the organizers said on Monday as the fair ended.

Transactions during the twice-a-year event held in Guangzhou, widely known as the Canton Fair, fell about 12.6 percent year-on-year to 191.18 billion yuan ($31.05 billion), according to the organizers. Deals were down 2 percent compared with the autumn session last year.

Perfect storm hits Canton Fair
Fair shadowed by weak exports 

Perfect storm hits Canton Fair
Fair sees nearly 11% slump in deals 

The number of overseas buyers declined 7.23 percent to about 188,000, according to Liu Jianjun, spokesman of the event.

Citing the sluggish performance at the spring session, Liu, who is also deputy director-general of the China Foreign Trade Center, said the nation's exporters, had become more aware of developing innovative products and building brands to boost competitiveness in the global market.

"Given current global economic conditions, a growing number of Chinese exporters have realized that increased competitiveness, following industrial transformation and upgrading products, will help sustain growth in the future," said Liu.

Exporters that have developed their own innovative brands and value-added products that use advanced technology concluded more deals with overseas buyers at the fair, according to Liu.

According to the organizers, transactions at the brand exhibition area accounted for 34 percent of the total deals signed at the fair.

Trade deals signed at the fair with traditional markets including the European Union and Japan declined 9.44 percent and 4.69 percent, respectively. Deals with buyers from the United States increased, but only by 2.45 percent from the spring session last year.

Demand from emerging economies dropped, with deals from other BRICS buyers (the group of nations comprising Brazil, India, China, Russia and South Africa) down 12.96 percent. Deals with buyers from the Middle East and the Association of Southeast Asian Nations slid 21.9 percent and 18.3 percent, respectively.

"In the shadow of China's recent sharp export declines, Chinese companies need to attach more importance to upgrading their products and building brands," Liu said.

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