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Booths brimming with bustle

By Ding Qingfen (China Daily)
Updated: 2009-10-16 07:15

GUANGZHOU: As the global economy begins to show signs of recovery from the deepest recession in decades, enthusiasm spread to Chinese exporters yesterday as they appeared more upbeat about sales and orders handled during this autumn's Canton Fair, hoping to get a leg-up on this year's overseas exports.

The 21-day Canton Fair, also known as the China Import and Export Fair, is the world's largest fair by floor area and starts one day after China reported surprisingly good trade figures.

Exports from China fell in September by 15.2 percent compared to the same period last year. Forecasters expected a 21 percent fall. The report suggested global demand is improving.

Compared with the fair held in April, where economies of the United States and Europe were deep in a quagmire, this Canton Fair is much busier, with slews of foreign purchasers flocking into the exhibition halls on opening day and exhibitors brimming with smiles and busily receiving them.

"We expect the sales volume of orders made during the fair to grow by 30 percent from the previous fair," said Li Xinghao, chairman of Chigo Holding Ltd.

The Guangdong-based company is a leading air-conditioner maker in China. In April, the company obtained orders worth $400 million, Li said.

Before this fair, many overseas clients called Li and told him they would join the fair and visit the Chigo booth.

"Obviously, the mood is improving," Li said.

TCL, China's leading TV manufacturer and the nation's largest TV exporter, had suffered since late last year when its American and European clients made budget cuts to save costs. But since the second quarter, exports have allegedly doubled compared with the previous quarter. Over 50 percent of TCL products are sold abroad.

"The improvement is sustainable. I am confident orders for this fair would at least double that in spring," said Yi Hao, managing director of TCL Overseas Holdings Ltd.

"The recovery is encouraging. We believe our sales volume through the fair will grow by 20 percent," said Eric Weng, international sales manager of Yonggao Co Ltd, a leading valve producer and exporter.

Chinese exporters are now looking beyond traditional US and European markets including the Middle East, Africa, South America and Southeast Asia.

They are afraid the recovery in the West has not made up ground.

"Uncertainties are there. External demand (from the US and Europe) is still dismal," said Yi Xiaozhun, deputy minister of commerce. "Emerging markets will be our new growth engine."

TCL's robust exports during the second quarter were mainly led by thriving growth in South America and the Middle East, according to company officials.

Guangdong Winto Ceramics, China's third largest ceramics maker, also benefited from the emerging markets. Joe Xie, general manager of Winto Ceramics, said that 15 percent of its products are shipped overseas, and a majority goes to Asian nations.

"So, we are much less affected by the financial crisis than our local peers. Now we are developing markets in South America and Africa," Xie said.

According to one importer, the "made-in-China" slogan does not stand for only cheap and low quality products anymore. Instead, its competitive prices and fair quality are gaining more recognition.

"In China, the price is cheap, but the quality is good," said Atif Noman Ali, managing director of Bangladesh-based World Business, an air-conditioner importer and seller.

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