At the 137th China Import and Export Fair, known as the Canton Fair, Chinese companies are demonstrating remarkable resilience and innovation in the face of escalating U.S. tariffs. Held from April 15 to May 5, the fair attracted over 224,000 overseas buyers from 219 countries and regions by the end of the second phase—a record high for the same period.
Diversifying Markets to Counter Tariffs
With mounting tariffs from the U.S., many Chinese firms are reducing their reliance on the American market. Yongjia Garments Co., which previously exported primarily to the U.S., noted that while their export volume has increased, prices have fallen due to tariff pressures. To adapt, the company is limiting exposure to any single market, cutting costs with suppliers, and building its own brand to enhance value.
Industry veterans are also recalibrating their strategies. Liang Yu, a senior trader in the lighting sector, shared that his firm has expanded into markets along the Belt and Road Initiative, including South America, the Middle East, and Southeast Asia. “Tariffs may cause short-term disruption, but the long-term impact is limited,” he said.
Shifting Focus to New Markets
Since 2018, larger firms in the Chinese mainland have been establishing overseas factories to mitigate trade-war risks. Some companies are gradually shifting exports away from the U.S. in favor of domestic sales and new markets in Southeast Asia, Canada, and Europe. Li Wei, a foreign trade practitioner, mentioned that Chinese products have strong global competitiveness and that ongoing tariff battles may accelerate the development of overseas Chinese industrial chains. He advocated for faster government approvals for outbound investment and clearer guidance on overseas processing applications.
Official data shows a significant decline in the U.S. share of China’s total exports—from 19.2 percent in 2018 to 14.7 percent in 2024. Conversely, exports to ASEAN countries have risen from 12.8 percent to 16.4 percent, and exports to Belt and Road countries have jumped from 38.7 percent to 47.8 percent. These markets continue to experience strong growth.
Innovative “Smart” Products Go Global
This year’s fair highlighted the technological edge of Chinese manufacturing. Innovations in artificial intelligence and intelligent design were on full display—from AI-powered plush toys and robot baristas to delivery robots and 3D printers.
A robotic coffee kiosk capable of brewing a cup in just 50 seconds drew long lines and secured over 10 million yuan ($1.39 million) in orders within two days. Now sold in more than 40 countries, the company’s founder remarked, “When your technology is essential to the world, tariffs don’t matter.”
A delivery robot firm also secured nearly $1 million in orders on the first day, including from American buyers. To showcase such advancements, the Canton Fair introduced a dedicated service robot zone featuring 46 companies across 4,200 square meters.
In the first phase of the event, more than 3,700 firms showcased innovations in smart manufacturing, AI, and new-energy technologies. Highlights included an AI lawn mower capable of autonomously trimming 2,000 square meters daily and a 3D ceramic printer that can produce intricate vases in under an hour, eliminating the need for molds and significantly shortening production cycles.
These breakthroughs reflect broader momentum. In 2024, China ranked 11th in the Global Innovation Index, with research and development spending second only to the U.S. and over 460,000 high-tech firms nationwide. As more high-value Chinese products gain global traction, “Made in China” is increasingly synonymous with cutting-edge innovation.
Strong Supply Chains Underpin Confidence
Beyond innovation, the fair underscored the Chinese mainland’s deep industrial strength and reliable supply chains. These advantages continue to attract global buyers and support export resilience.
At the fair, a Guangzhou-based luggage exporter unveiled more than 200 models, with fresh designs comprising over half the lineup. The company secured deals exceeding 4.5 million yuan, up 12 percent from the last session. Many exhibitors hailed from Shiling Town, a major leather goods hub that produces 700 million bags annually for 140 countries.
China’s industrial clusters enable rapid customization and efficient procurement. Buyers often visit nearby factories after discovering products at the fair, facilitating faster decision-making and deeper collaboration. For example, a Greek buyer, captivated by glittering, diamond-like embroidery artwork at the fair, visited a factory in Yiwu with hopes of introducing the product to Europe.
An American buyer told China Media Group that China’s manufacturing reliability remains its biggest draw. “If we need a capacitor, we can get it the same day. We’ve built long-term partnerships here. You can’t just replace that overnight,” he said, adding, “I hope the U.S. administration rethinks its tariff policy so we can collaborate more freely.”
The Chinese mainland has been the world’s largest manufacturing nation for 15 consecutive years, boasting the most comprehensive industrial system globally. In the first quarter of 2024, China’s trade volume reached 10.3 trillion yuan—up 1.3 percent year-on-year and marking the eighth straight quarter above the 10 trillion mark.
