Watch below to learn how to use the China Import and Export Fair (Canton Fair) website.

 Sign up at https://www.cantonfair.org.cn/en/. Email programs@globalsf.biz for a VIP registration code to unlock more potentials of attending the Canton Trade Fair!

Canton Fair Promotion Recap

Canton Fair has a history of 60 years. Overseas buyers from 270 countries and buyers participated in the 127th virtual fair in the spring of this year. The 128th Canton Fair will be held virtually from October 15 to October 24, featuring 50 exhibition sessions under 16 categories. The Canton Fair features designated section for China’s Comprehensive Pilot Zones for cross-border eCommerce. Tracy Mai, a senior manager from the China Foreign Trade Center, extended warm welcome for US companies to join the event. The organizer from the Canton Fair introduced the best uses of the official website of the 128th Canton Fair – registering as a buyer, finding exhibitions and exhibitors, and connect with Chinese clients and suppliers via instant messaging and one-on-one meeting, and even directly submitting sourcing requests. Please email vip_service@cantonfair.org.cn if you have more questions about how to participate in the Canton Fair!

Characteristics and trends in agricultural trade and cross-border e-commerce between the US and China

US-China bilateral trade totaled 636.8 billion USD in 2019 albeit the trade war. David John, Business Development & Market Analyst of General Produce Company, said that as an agricultural exporter in California, he has been seeing great resilience and growth potential in agricultural bilateral trade based on mutual reliance and strong subnational relations. Produce like nuts (almond, walnut, etc.), citruses, and apples have experienced consistent and rapid growth in exports to China. 

Dan McAvoy is General Manager and co-founder of PairPoint Group. PairPoint Group has had an office and a team based in Chongqing City in China for eight years. Dan said they have built connections on the ground with the local government, vendors, and customers and have collaborated extensively with US Commercial Services. California would be the third largest provider of food for the world if it were a country. Having assisted agricultural companies export products to China, Dan said they had originally wanted to open a new office in Jinan city (Shandong province) this March. It didn’t happen because of the pandemic. But they are going to move forward with it because they “believe without a doubt that the opportunities are there, and the market is there.” 

This view was echoed by John Paul Makilya, Senior Manager at B2B Logistics at Alibaba.com, who quoted that US exports are up about 10% month over month since June while imports from China are still very strong and there are lots of connections between SMEs in both countries. Alibaba works with a range of US SME exporters to China and has seen lot of growth in agricultural goods, food and beverage, apparel and footwear from states like California, New York, and Washington. Alibaba is dedicated to bringing the e-transaction experience of B2C to B2B transactions to further facilitate bilateral trade.

China-US freight market dynamics in 2020 and impact on businesses

John Paul explained that from January to late March both the COVID-19 pandemic and the Chinese New Year caused slowdown of freight transport. For example, cargoes were allowed into China, but the crew could not disembark. In April, China picked up from the dip, but the US shut down the economy. Freight capacity was being pulled out and air freight price spiked up to a 10-year high. Since then, the freight market has regained some stability while freight prices remained relatively high. The bright side is that the pandemic has brought overall stability regarding other uncertainties such as tariffs. David restated that shipments of agricultural products have not been impacted too much, other than when the risks of shipping fresh and perishable products were too high.

SME businesses and the US-China supply chain

Dan emphasized that within China, logistic capacities are very well equipped. For small- and medium-sized companies, the availability of supply chain in both countries is very important, including the availability of freight forwarder and understanding of each other’s rule and regulations on customs and inspections. In the case of agricultural produce, the improvement of Cold Chain in China in the past 5 years is rapid and significant.

From a market perspective, John Paul observed that increasing interdependence in supply chain and a growing Chinese middle class meant growing demand in a variety of categories such as specialty foods and beverages (such as fine wine). Small- and medium-sized companies should utilize B2B platforms such as Alibaba.com to connect with suppliers and buyers and continue to export globally.

How can a platform like the Canton Fair be beneficial for US exporters?

Dan pointed out that with COVID-19 and the trade war, it is especially important to keep the communication channel open. Agricultural trade is essential – consumers on both sides demand agricultural products from the other country. The business community is going to keep up the growth momentum. Opportunities like the Canton Fair keep the information flow and the conversation going. 

Alibaba Group considers these online tradeshows opportunities to build strong and lasting relationships that instills confidence in both sides. Virtual events like this keep the conversation going throughout the year between buyers and suppliers. John Paul highlighted the continuing and enduring US-China relationship despite of political uncertainties and the pandemic and the intricately connected US-China supply chain. The presence of large Chinese companies in the US and vice versa is a testimony of great potential of growth, rooted in consumer demands for the other country’s goods. “We should not lose sight of these business opportunities and develop new opportunities via tradeshows like the Canton Fair.”