Sofreight, a Chinese national logistics and shipping information site, recently reported that, when the 124th Canton Fair (also known as the China Import and Export Fair) closed, it showed a decline of over 30 percent, to US$279 million, in the level of exports to the United States. Also, in addition to the decline of U.S. buyer attendance, the attendance of buyers from other major economies also saw a significant decline. Compared to last year, European Union buyers declined by 3.93 percent, the U.S. buyers declined by 4.07 percent, and Hong Kong declined by 6.34 percent. The Canton Fair has historically been the primary barometer to measure China’s international trade health. The export level reflected in the Fair was in line with what was demonstrated in the recent Chinese export PMI numbers. In October, the Chinese export orders index under its PMI score reached the lowest point since 2016. According to a Fair internal survey conducted by the Zhejiang Province delegation among their own 4,690 companies that participated in the Canton Fair, over 60 percent of the companies have 10 percent or more revenue dependency on exports to the U.S. Around 15 percent of companies have over 80 percent dependency on U.S. exports. Around 66 percent of the companies surveyed expected an export decline of 10 percent or more.
Source: Sofreight, November 9, 2018