On April 15, the world's largest trade fair, the famous Canton Fair, in the Chinese city of Guangzhou (https://www.cantonfair.org.cn/en-US), the Asian giant’s main showcase of products to the world. Now in its 133rd edition (it has been held since 1957 and has long been held twice a year), it will be the first to be held following the lifting of COVID-19 restrictions in China. Some 34,000 exhibitors are expected to attend.

The mood, however, is not particularly optimistic. According to a survey conducted by the Chinese Ministry of Commerce among 20,000 exporters, the decline in foreign demand is one of the main challenges they face this year.

One of the main reasons for the weak foreign demand for Chinese products is the trade war and political tensions between China and the United States. Chinese exports to the United States fell 14.2% in January and 21.8% in February compared to the same months last year, and the U.S. has slipped to third place as China’s largest market by value, surpassed by the Association of Southeast Asian Nations (ASEAN) and the European Union. In any case, China’s total exports fell by 6.8% in the January–February period compared with the same two-month period in 2022.

In light of this situation, Chinese authorities are implementing a variety of measures, such as streamlining customs procedures, providing credit support to small exporters, and offering tax rebates, as well as efforts to diversify their markets, with a special focus on the Regional Comprehensive Economic Partnership (RCEP), a free trade agreement among the ten ASEAN member states and five countries in Asia and Oceania with which ASEAN has free trade agreements.