GUANGZHOU, China – The 137th session of China Import and Export Fair, also known as the Canton Fair, took place amidst growing concerns over rising U.S. tariffs on Chinese goods. The impact of these tariffs was felt by manufacturers and exporters, especially those heavily reliant on the American market.
Mini-oven maker Foshan Zero Point Intelligent Electrical Appliance Co., Ltd. faced a significant blow as 90% of its products were sold in the U.S. Sales manager Steven Zhang mentioned that the escalating tariffs led to a standstill in their operations, forcing the company to halt deliveries of raw materials and put workers on leave. Similarly, Guangdong Gales Electrical Appliance Co., Ltd., a blender and juicer maker, experienced a halt in orders from their American customers.
The repercussions of the trade tensions were evident as companies at the Canton Fair scrambled to adapt to the changing landscape. With U.S.-China trade relations at a standstill, uncertainty loomed over the future of Chinese exports to the United States.
Economists predicted a significant impact on Chinese growth due to the trade war, prompting companies to explore new markets. While some, like Zhang Zhengang from a Tianjin-based bicycle manufacturer, expressed confidence in diversifying into domestic and international markets, others like Monica Liang mentioned challenges in pivoting their product lines.
As Chinese companies grappled with the effects of the trade war, strategies such as setting up production facilities in third-party countries emerged as potential solutions to circumvent tariffs. However, uncertainties around changing tariff policies left many manufacturers in a state of limbo, waiting eagerly for developments that could offer some clarity on their future prospects.
The evolving trade landscape urged Chinese companies to adapt quickly and seek new opportunities beyond their traditional markets. While the impact of the trade war continued to unfold, the resilience and adaptability of Chinese exporters shone through as they navigated the challenges posed by the shifting dynamics of global trade.