Global crisis puts a damper on fair

Despite a slight increase in the number of overseas buyers, the sales volume declined atChina's largest trade fair, sending a gloomy signal for the export outlook.

Transactions clinched at the 111th China Import and Export Fair, which concluded on Saturdayin Guangzhou, capital city of Guangdong province, totaled about $36 billion, down 4.8 percentand 2.3 percent compared with the fair's 110th and 109th sessions, sources with the fair'sorganizing committee said.

The fair, also internationally known as the Canton Fair,meanwhile, has registered more than 210,000 overseasbuyers from 213 countries and regions, a slight increase of0.23 percent over the previous session.

"The decline in sales was mainly due to sluggish demandfrom Europe and the United States," said Liu Jianjun, thefair's spokesman.

Affected by the European debt crisis, the number of buyersand transaction from Europe decreased by 15.5 percent and5.6 percent, respectively, Liu said.

Sales volume to US buyers also decreased by 8.1 percentcompared with the last session, according to Liu.

"Buyers are still holding a cautious approach in signing long-term orders with Chineseexporters due to the global financial crisis," said Liu, who noted that about 86 percent of orderssigned at the fair are short-term deals.

"Disappointed by slowing demand from Europe, we have turned to emerging markets like SouthAmerica," said Cao Yunhui, exports manager of Fuxin Electronic Technology Co, a wine coolerexhibitor at the Canton Fair.

Transaction from emerging markets including the BRICS members and African countriesincreased by 4.1 percent and 13.5 percent, respectively, sources with the fair's organizingcommittee said.

Chen Feng, executive chairman of Guangdong Xinghui Auto Model Co, said the company'sbusiness in emerging markets - including Brazil, Russia, India and South Africa - has seen adramatic increase in the past two years.

The company, based in Shantou of Guangdong province, ships its toy model cars to 47countries and regions, with its profit in Russia, for example, increasing by 40 percent last year,according to Chen.

"Along with upgrading our products, we have been focusing on the emerging markets since theglobal financial crisis in 2008, when the world economy in major markets of Europe and the UShas been sluggish," Chen said.

With a dramatic increase of exports to emerging markets, the company has witnessed steadybusiness growth in recent years, with sales reaching some 440 million yuan ($70 billion) lastyear.

To attract more buyers from the developed markets like Europe and the US, the fair'sspokeman Liu Jianjun urged Chinese companies, especially those mainly engaging in simplyprocessing, to focus on developing their own brands and invest more in self-innovation.

"Providing high-end products catering to the EU market is the key to stabilizing export growth,"Liu said.

Chinese manufacturers who have already brought new and innovative products with highadded value have seen rising popularity among European buyers, Liu said.

"Besides the emerging markets, Chinese manufacturers should also turn to the domesticmarket to develop their sales channels," Liu said.