GREEN TECH EXPORTERS ABUZZ AS ORDERS RISE
Air of enthusiasm after largest trade fair reports more arrivals from overseas with demand particularly high for new-energy products
Exporters are maintaining a sunny outlook for the year, paying no heed to the storm clouds forming over the domestic new-energy industry after allegations of overcapacity by the United States and the European Union – nor the trade restrictions that are likely to come in their wake.
This optimism was on display for the latest session of the Canton Fair, a semi-annual event held since 1957 that serves as a barometer for the state of Chinese exports. The bullish atmosphere at the fair, which started on Monday, can be credited to a persistent global demand for products aiding the green transition.
Those sentiments were reflected in the turnout, with a marked increase in those attending from abroad. More than 87,800 overseas buyers and around 28,600 Chinese exhibitors were present for the first two days of the event, organisers said. This was a 21.8 per cent increase in overseas participants from the previous session in November.
“The world is interested in green technology, and it is nice to see that the Canton Fair has put such a focus on that,” said Steven Selikoff, an American importer on the hunt for consumer electronics and green products.
Washington has joined the European Union to meet head-on the challenge presented by China’s robust exports of newenergy products. During her second visit to China in nine months, US Treasury Secretary Janet Yellen said China’s industrial overcapacity, especially in new energy sectors, presents threats to US industry and employment.
But that did not deter Selikoff from seeking opportunities in China. “[Yellen] was here just two weeks ago, but we believe that business does business and politicians do politics,” he said.
He was not alone. Among those already registered, the number of US importers attending rose more than 20 per cent from the autumn session, with those from countries in the Middle East increasing by 24.7 per cent.
“We feel the market is recovering,” said Ella Zheng, sales director of Skytimes Ltd. Zheng’s company produces lithium-ion portable power stations as well as backyard and wall-mounted solar power systems.
The company gained more than 50 new customers and signed deals worth more than US$10 million at the previous session of the fair, and expects to double that during the current session, Zheng said.
Geopolitical complications have impacted the activities of Chinese exporters and they have to respond more quickly to changes in logistics, delivery and payment methods, Zheng said.
“Judging from the first day, there are a lot more buyers than last year,” said Chen Lijun, sales manager of Hebei Nonferrous Metals Co. “Demand from Europe and the US is picking up as inventory is dropping. Quite a few American clients said they would come, and we expect them to place orders to cope with risks of punitive tariffs and other trade restrictions on Chinese products after their presidential election.”
China produced 2.07 million new energy cars in the first three months of 2024, up 30 per cent from the previous year, according to the National Bureau of Statistics. The country also produced enough solar panels to generate 126 million kilowatts of energy during the same period, up 20 per cent from a year earlier.
“I have already placed orders for three containers this morning, including solar products, batteries, windmills and inverters,” said Tony Ferris, a buyer from Australia.
As Chinese producers face more competition, prices are expected to drop further, which some attendees said would also benefit overseas buyers.
“The truth is businesses can thrive from overcapacity,” said Jack Perry, chairman of the 48 Group Club, a British trade organisation. “There’s an opportunity now to get cheaper products.”