At China’s largest trade fair, exporters worry about world economy

by David Kirton and Ellen Zhang

GUANGZHOU( Reuters )- Chinese exporters displaying their goods at the nation’s’s largest trade show claimed that the weak global economy was harming their businesses, prompting many to freeze investments and some to reduce labor costs.

China’s’s unexpected increase in imports in March may have been caused by manufacturers catching up with directions delayed last year by COVID restrictions rather than renewed financial strength, according to the subdued feeling at the Canton Fair in the southern city of Guangzhou.

As quickly rising borrowing costs in the US and Europe hit need for Chinese-made goods, this is the first significant trade event since China immediately loosened COVID restrictions and reopened its borders.

According to Kris Lin, a representative from Taizhou Hangjie Lamps, which produces Christmas lights, this year’s’s orders have decreased by 30 % from last year.

The central government assisted in resolving the issues last year, which were caused by logistics and manufacturing disruptions. That is an underlying problem. We currently have physical issues. We didn’t deal with those, Lin said.

He predicted that” this year will be the hardest for us ,” with higher energy bills brought on by the conflict in Ukraine more lowering need for his jewelry.

The business, according to Lin, cannot afford to sell for less money, but it might try to cut labor cost. Plan people who are released between September and October following the delivery of Christmas orders are a source of income for the company.

I will release my employees earlier if purchases are bad this year.

Same ideas are shared by Huang Qinqin, sales manager at Zhong Shan Shi Limaton Electronics, a manufacturer of exhaust fans, regarding cutting costs after commands were halved in the first third.

Workers in our manufacturer report to work when there are purchases, according to Huang. This used to entail working overtime, especially on weekends, but this year, she said, it is more typical for employees to have weekends off.

Shaving device manufacturer from the eastern city of Ningbo claimed that the company had already fired employees and would bring prices in the coming weeks if purchases don’t get better. The manufacturer asked to remain anonymous in order to reveal future plans.

Politicians, who aim to create 12 million different projects across China this year, up from their previous goal of 11 million, are concerned about the worsening vision for manufacturing industry professionals.

Numerous Chinese suppliers told Reuters that given the low interest this year, they did not plan to spend more on enhancing production lines.

Topgrill, a company that manufactures outdoor grills and has lowered prices by 5 % to entice customers, said,” We have no plan to increase investment.”

The good, which runs through May 5, won’t likely see a significant increase in sales, according to Vicky Chen, international trade manager at socket manufacturer Qinjia Electric.

The rational won’t change the fact that the world economy as a whole is currently doing badly.

( Writing by Marius Zaharia, editing by Tom Hogue, Ellen Zhang David Kirton )

This week has been filled with significant stories in the U.S. and elsewhere. OAN NewsroomUPDATED 7: 19 Do – Saturday, April 15, 2023.

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