TAIPEI—Data analysis from the China Import and Export Fair, also known as the Canton Fair, shows China’s export situation is not as bad as predicted, but is facing a severe test. The fate of “Made in China” still hangs in the balance.
Consumers spent a total of US$16.450 billion at the fair. The international financial crisis may be widespread, but the huge amount spent at the Canton Fair is still worthy of contemplation, China News reported on October 22.
The $16.450 billion is a 10.8 percent drop from the previous year, and particularly notable this year is that more companies chose to be involved.
Electronic exports from China totaled $13.92 billion, which is about 13 percent less than the previous year. Chinese media have dubbed electronic products the “life line” for exports. The recent drop in electronics in Guangdong, Zhejiang and Jiangsu provinces has shaken confidence in the industry.
China’s markets in Europe and North America have also shrunk. It remains to be seen whether there will be any new market opportunities to support China’s exports.
Officials from China’s Ministry of Commerce have held multiple closed-door meetings with companies to discuss China’s export situation. It is reported that one representative claimed that Chinese companies are facing difficulties at home and abroad, and had continuously requested aid from the authorities.
The analysis points out that the rapid growth of exports had always been an important factor in China’s economic growth. Last year, exports occupied 37 percent of China’s GDP. According to planning and development commission, during the first half of 2008, nearly 70,000 small to medium sized companies went out of business. Most of the companies sold toys, clothing or other manufactured goods are cooperative enterprises with funds from Hong Kong and Taiwan.
Financial experts say that the data from the fair shows that the negative effects of the financial crisis may have already arrived.
