Canton Fair held last week in the southern Chinese city of Guangzhou, saw participation from exhibitors from India, Pakistan and Turkey and attendees from various countries across the globe.
China’s extension of invitation to regional competitors to the exhibition held twice a year is in line with President President Xi Jinping’s Belt and Road Initiative to reach out to clients that constitute over 40 pc of world’s population. Moreover, it also depicts that Chinese attitudes are fast shifting. According to Zhang Tao, “”Before we thought of India and Pakistan as our competitors,” said Zhang Tao, assistant manager at Zhejiang Willing Foreign Trading Co. in Hangzhou, which exports yoga clothing. “But now we cooperate with them. They’re welcome to come to China.”
According to Bloomberg, the presence of international competitors at the export fair also shows the Chinese nation’s shift in business vision from being manufacturers of cheap jeans and towels toward branded goods with better design and quality. Moreover, the initiative is backed by a keen government which is willing to give up low-end manufacturing if needed.
As per Bloomberg, China is no longer the cheapest option to locate industries due to a surge in wages over the past years. China, however, is adopting modern business practices by increasing automation, improving productivity, producing better quality and locally branding. This has not only helped boost profits but is also aiding the manufacturing sector in China to remain competitive in the global scenario.
Hence, China inviting global competitors to showcase exports is “not a sign of decline of the Chinese industry and the arrival of emerging market competitors at the fair should be seen as part of the transition from “Made in China to Created in China,” stated Liu Sihua, owner of Hangzhou Riyan Import & Export Co. on China’s east coast.
Home furnishings maker Sahil International from India’s Panipat, stated that his company was the only company at the fair some three years ago. However, this year saw participation from 15 to 20 Indian companies, he said.
Similarly, Turkish companies have increased from about ten in 2015 to 20 this year, said Mehmet Bayam, chief executive officer at Denizli-based Vateks, whose products range includes towels and bathrobes. He added that despite being there tough competition, he was able to win contracts due to the quality of Vatek’s products.
The Canton Fair is reported to be the world’s largest such exhibition, where more than 24,000 exporters and 196,000 buyers, from across the globe sign deals. The spanning exhibition space is equivalent to to 2,500 basketball courts. As per the website, turnover reached more than $30 billion during three sessions from mid-April to early May.
For exporters such as Cotton Empire from Karachi, Pakistan the Canton fair presents an opportunity to tap international clients at a time when the company’s main markets in the U.S. and Europe are shrinking as buying power remains weak.
