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Emerging markets boosting export orders

Jan-Sept trade value with over 160 economies continued to grow

By ZHONG NAN | China Daily | Updated: 2024-10-22 09:52
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Traders from around the world discuss business orders at the 136th Canton Fair in Guangzhou, Guangdong province, on Oct 15. [CHEN JIMIN/CHINA NEWS SERVICE]

That sentiment also aligns with the latest market trend. At the 136th session of the China Import and Export Fair, or the Canton Fair, buyers from emerging markets have steadily taken the lead, surpassing those from Europe and North America as the primary participants, according to the Guangzhou, Guangdong province-based China Foreign Trade Center, a Canton Fair organizer under the Ministry of Commerce.

The global trade event, held twice a year in spring and autumn, is being held from Oct 15 through Nov 4 in Guangzhou.

A total of 125,000 overseas buyers had registered for the 136th session of the fair by Oct 9. Among them, about 76 percent are from countries and regions involved in the BRI, while 12.5 percent are from North America and Europe, said the Ministry of Commerce.

Liu Yonghui, a sales manager at Guangzhou Jetinno Intelligent Equipment Co Ltd, a coffee machine manufacturer, said this is the company's fourth time participating in the Canton Fair and it hopes to secure more orders from overseas customers through the event.

Despite the current slowdown in global economic growth and the rise of protectionism and unilateralism, he said that Europe remains the company's most important overseas market. Moreover, markets in Asia, the Middle East and South America have also been growing quickly in the past two years.

Huang Zhimin, chairman of Fujian Time and Tianhe Industrial Co Ltd, a Quanzhou, Fujian province-based maternal and infant product manufacturer, said that the company's export value grew by 20 percent year-on-year from January to September.

"In addition to running OEM (original equipment manufacturer) business, we plan to leverage both domestic and international trade shows to expand our own brands into more emerging markets and attract new clients in the fourth quarter," said Huang.

Emerging markets, with their substantial market potential and promising growth prospects, are also drawing an increasing number of Chinese businesses in search of business opportunities, said Liu Qian, deputy dean of the Belt and Road School at Beijing Normal University.

Viewing the ASEAN markets as crucial to its global business strategy, Chinese electric vehicle maker Avatr entered the Thai market in September, joining a long list of Chinese automakers, including BYD, Zhejiang Geely Holding Group and SAIC Motor Corp Ltd, exploring that country.

"We aim to establish Thailand as a strategic market for our business growth in Southeast Asia," said Chen Zhuo, the company's president.

In 2023, nearly 80 percent of China's outbound direct investment flowed into Asia, a 13.9 percent increase compared with the previous year. Of this, Chinese companies' investment in ASEAN reached $25.12 billion, an increase of 34.7 percent on a yearly basis, said the Ministry of Commerce.

Han Yonghui, a professor specializing in foreign trade at Guangdong University of Foreign Studies, said that Chinese companies, once heavily reliant on customer demand to drive production and often passive in the competitive landscape, are now leveraging accumulated capital and technology to demonstrate their innovation and technological prowess.

For instance, around 390,000 digital and smart products are being showcased during the 136th Canton Fair, a 300 percent surge compared to the previous edition, while the number of green and low-carbon products has risen 130 percent to over 1.04 million, said the fair's organizer.

By embracing digital and green concepts, Chinese manufacturers are actively shaping the market's future direction, said Han.

Similar views were expressed by Lyu Daliang, director-general of the GAC's department of statistics and analysis, who said that as the global new energy sector is undergoing rapid development, China's exports of tech-intensive green products have strengthened global supplies and contributed to the easing of inflationary pressure.

These exports are also instrumental in addressing climate change and supporting the global green transition, said Lyu.

Collectively, exports of China's "new trio" — namely electric vehicles, lithium batteries and photovoltaic products — totaled 757.83 billion yuan in the first nine months, accounting for 4.1 percent of the country's total exports. These products have reached over 200 countries and regions and are widely welcomed worldwide, according to information released by the GAC.

Wang Lingjun, vice-minister of the GAC, said that with the continued implementation of existing policies and the introduction of new policies, the positive factors for foreign trade development have accumulated. China has the foundation for stable trade growth in the fourth quarter.

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