Canton Fair ends dismally, official media says foreign trade should not rely on short-term stimulus

On May 5, the 115th Canton Fair closed. The number of buyers attending the fair and the export volume both declined for two consecutive sessions. China’s foreign trade exports are still facing heavy pressure. Xinhua News Agency believes that in the longer term, this huge “trade engine” cannot continue to operate by relying on short-term stimulus policies such as RMB depreciation and export tax rebates.
Liu Jianjun, spokesman for the Canton Fair and deputy director of the China Foreign Trade Center, disclosed the relevant data of this Canton Fair as follows:
During the 21-day conference, a total of 188,119 buyers from 214 countries and regions attended the conference, a decrease of 0.81% from the 114th session and a decrease of 7.23% from the 113th session last spring.
The cumulative export transaction volume of this Canton Fair was 191.184 billion yuan, equivalent to 31.051 billion U.S. dollars. After excluding exchange rate factors, it decreased by 2.01% month-on-month and 12.64% year-on-year.
The export transactions of this Canton Fair are mainly short- and medium-term orders, and the proportion of long-term orders is still low. Short-term orders within 3 months account for more than 50%.
The full name of the Canton Fair is “China Import and Export Fair”. It has always been a barometer and weather vane of China’s foreign trade situation.
The bleak situation at this Canton Fair is consistent with the disappointing foreign trade data in the first quarter.
Wall Street News website previously reported that in March, China’s exports fell by 6.6% year-on-year, and imports fell by 11.3% year-on-year, both significantly lower than expected.
Xinhua News Agency reported that some Chinese foreign trade companies believe that the current trend of RMB depreciation will indeed have a certain positive effect on China’s foreign trade itself. At the same time, they also expect the Chinese government to provide more direct support in terms of export taxes and other aspects.
But most Chinese companies no longer rely on these “short-term stimulus policies.” The report quoted Sun Shubao, marketing director of Qingdao Haier Group’s European region, as saying that for this company with 24 factories around the world, whether the RMB appreciates or depreciates, the market effects will be huge. It is extremely complicated. The idea that “a devaluation of the RMB can stimulate exports” is completely nonsense.
Liu Jianjun said that whether it is for China’s foreign trade industry itself, which has ranked first in the world in terms of scale, or for tens of thousands of Chinese foreign trade companies, which hope to maintain stable growth in a severe environment, the government’s support policies must take into account the current and Maintain balance in the long run.
At the State Council meeting on April 30, Premier Li Keqiang deployed a series of measures to support the steady growth of foreign trade, including improving trade facilitation, improving financing services, and further accelerating export tax rebates.
The day before, Vice Premier Wang Yang said during a survey in Tianjin that there will be greater downward pressure on foreign trade this year. It is necessary to closely track the import and export situation and timely study and introduce policies and measures to support the development of foreign trade.
The report quoted market participants as saying that these policies focus more on the overall transformation and upgrading of the foreign trade industry rather than simple “direct stimulation.” This also provides space for Chinese companies themselves to seek new development channels through the market.