Beijing - With the world economy in a state of flux, the Canton Fair has become a key event for foreign businesses seeking trade opportunities and new business with China and other countries.
Officially called the 121st China Import and Export Fair, it takes place twice a year in Guangzhou city, Guangdong province, from April 15 to May 5.
It was first held in 1957 to break China’s embargo with the outside world and increase foreign exchange. It has become an important economic platform and a barometer of the country’s trade.
China’s economy is pinned at second place in the world and its foreign trade volume has reached number one worldwide.
At the fair, crowds mill through a maze of exhibition booths, on multiple floors. The latest household appliances and technology; gizmos for petrolheads and gadgets for geeks are all on show, from small businesses to top brands.
According to the organisers, the first fair took place in an area of 9600m2. Just over 1200 overseas buyers from 19 countries did $17million in export transactions.
Picture: Melanie Peters
It has since grown into the world’s largest trade event. The exhibition area is now 1.18 million square metres - that’s roughly a hundred rugby fields. More than 200000 buyers from 210 countries are expected to do business to the tune of $30 billion in export transactions.
The number of buyers is more than double the amount of visitors who came to Cape Town during the soccer World Cup in 2010.
The fair’s international pavilion hosts 600 foreign exhibitors from more than 50 countries, including the US, Japan, Germany, Italy and the UK.
In response to the global economic downturn, the fair in recent years has become a key driver for new opportunities for foreign and Chinese businesses, as well as buyers.
It is a pity there are exhibitors from only 10 African countries this year. These include Egypt, Uganda, Zambia, Kenya and Ghana.
Egyptian Tarek Mohamed is the export director of a kitchen appliance brand called Universal. The company has been doing business at the fair for many years.
Mohamed admits these are tough times and attending the fair plays a major role in promoting their products to customers across the world.
“We do good business here. Last year we made $5m. More African countries should attend the fair it has helped us grow our business in different parts of the world, like Australia and Europe.”
Vice-president and secretary-general of the fair Jinqi Li hoped to attract more African companies to the fair in future.
Last year, there were more than 13000 buyers from Africa but this year the number had decreased to 7400.
Africa was an important market with great potential, he said. The fair wanted build better ties with companies in Africa. He believed they could benefit from the fair, like so many other companies.
The Canton Fair is known as an incubator for small and medium enterprises exploring the international market. It has helped thousands of companies market their products and reach more customers around the world.
It has helped many Chinese companies too, with some even joining the ranks of the Fortune 500.
The fair is poised to play an important role in the Chinese government’s much-vaunted Belt and Road Initiative, a new Silk Road linking Asia, Africa and Europe.
The initiative is set to boost trade and the economies of partner countries. So, firms in Africa, and South Africa, would do well to heed Li’s call and book a booth at the fair.
* Melanie Peters is the Live editor of the Weekend Argus. She is on a 10-month scholarship with the China Africa Press Centre.
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