As global trade tensions intensify, the 137th China Import and Export Fair in the Chinese mainland—known as the Canton Fair—has become a barometer of resilience and creativity among Chinese mainland exporters. From April 15 to May 5, the event drew a record-breaking 224,000 overseas buyers from 219 countries and regions by the end of its second phase.
Diversifying Markets to Dodge Tariffs
When faced with rising US tariffs, many companies are rewiring their strategies. Take Yongjia Garments Co., for example: although its export volume to the US climbed this year, selling prices dipped under tariff pressure. The firm now caps its US market exposure at 30%, cuts production costs and invests in its own brand to add value.
Liang Yu, a senior trader in the lighting sector, says his company is shifting focus to Belt and Road markets—spanning South America, the Middle East and Southeast Asia. "Tariffs may shake us in the short term, but the long game is about sustainable growth," Liang notes.
Overseas Factories and Inland Opportunities
Since 2018, larger players have set up manufacturing hubs overseas to hedge trade-war risks. Some are dialing back US shipments in favor of domestic sales and markets in Southeast Asia, Canada and Europe. Li Wei, a foreign trade specialist, tells CMG that Chinese mainland products are globally competitive, and the tariff standoff is speeding up the emergence of overseas industrial chains. He calls for faster approvals and clearer guidelines for outbound investment.
Shifting Trade Patterns
Official data reveals a clear shift. From 2018 to 2024, the US share of China's total exports fell from 19.2% to 14.7%. In contrast, exports to ASEAN countries and regions rose from 12.8% to 16.4%, while shipments to Belt and Road partners jumped from 38.7% to 47.8%. These figures highlight the growth engines powering Chinese mainland trade beyond the US.
As protectionist policies spread, the Canton Fair stands out as a proving ground for exporters' adaptability, signaling that in an uncertain global market, innovation and diversification are key to staying ahead.
Reference(s):
Canton Fair shows how Chinese firms are breaking U.S. tariff barriers
cgtn.com
