# At China’s largest trade fair, exporters worry about world economy Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Weak Global Economy Worries Chinese Exporters at Canton Fair Meta Description: Chinese exporters at China's largest trade fair express concern over weak global economy, with orders down and labour costs being cut. URL: https://financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-16t072916z1lynxmpej3f01vrtroptp4china-economy-canton-1736814141647-compressed.jpg) # At China’s largest trade fair, exporters worry about world economy By Ellen Zhang and David Kirton GUANGZHOU (Reuters) -Chinese exporters exhibiting their products at the country’s largest trade fair said the weak global economy was hurting their businesses, with many freezing investments and some cutting labour costs in response. The subdued mood at the Canton Fair in the southern city of Guangzhou suggests China’s unexpected jump in exports in March may have reflected exporters catching up with orders delayed last year by COVID curbs rather than renewed economic strength. The first major trade event since China abruptly dropped COVID restrictions and re-opened its borders comes as sharply higher borrowing costs in the United States and [Europe hit](https://www.financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discounts.html "U.S. oil exports to Europe hit record in March on steep discounts") demand for Chinese-made goods. Kris Lin, a representative from Christmas light producer Taizhou Hangjie Lamps, said this year’s [orders](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level") so far are down 30% from last year. The difficulties last year came from logistics and production disruptions but the local government helped [solve the problems](https://www.financedigest.com/british-start-up-reveals-the-secret-to-solving-the-problem-of-identity-fraud.html "British start up reveals the secret to solving the problem of identity fraud"). That’s an internal issue. Now we have external problems. We can’t solve those,” Lin said. This year will be the hardest for us,” he said, with higher electricity costs caused by the [war in Ukraine](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war") reducing demand for his decorations even further. Lin said the company cannot afford to [sell at lower prices](https://www.financedigest.com/3-tricks-to-get-a-better-price-when-selling-your-car.html "3 Tricks To Get a Better Price When Selling Your Car"), but it may look to reduce labour costs. The firm relies on contract workers who get [released in September to October after the delivery of Christmas](https://www.financedigest.com/king-charles-releases-photo-for-first-christmas-card-as-monarch.html "King Charles releases photo for first Christmas card as monarch") orders. If orders are [weak this year](https://www.financedigest.com/uk-to-avoid-recession-this-year-but-outlook-still-weak-bcc-says.html "UK to avoid recession this year but outlook still weak, BCC says"), I will set my workers free earlier. Huang Qinqin, [sales director](https://www.financedigest.com/adnami-appoints-sophie-spencer-as-uk-agency-sales-director.html "Adnami appoints Sophie Spencer as UK Agency Sales Director") at Zhong Shan Shi Limaton Electronics, a producer of exhaust fans, has similar thoughts on cutting costs after orders halved in the first quarter. In our factory, [workers come to work](https://www.financedigest.com/1-in-5-uk-workers-believe-there-is-a-gender-divide-with-work-uniforms.html " 1 in 5 UK workers believe there is a gender divide with work uniforms") when there are orders,” Huang said. This used to mean working overtime even on weekends, but it is more common this year for workers to take weekends off, she said. A producer of shaving devices from the eastern city of Ningbo, who asked to remain anonymous to unveil future plans, said the [firm had already laid off workers and will lower prices](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") in coming months if orders don’t improve. The worsening outlook for workers in the manufacturing industries will raise concerns among policymakers, who target 12 [million new jobs across](https://www.financedigest.com/700000-employees-across-the-uk-have-access-to-fair-finance-will-reach-one-million-employees-in-2017.html "700,000 Employees Across The UK Have Access to Fair Finance, Will Reach One Million Employees in 2017") China this year, up from last year’s goal of 11 million. Dozens of Chinese suppliers told Reuters they did not intend to spend much on improving production lines this [year given the weak demand](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away"). We have no plan to increase investment,” said Luna Hou, sales representative at Topgrill, which makes outdoor grills and has [cut prices](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") by 5% to lure buyers. Vicky Chen, foreign trade manager at socket producer Qinjia Electric, said she did not expect a big [sales boost](https://www.financedigest.com/ikea-stores-owner-ingka-says-campaigns-help-boost-store-visits-and-sales.html "IKEA stores owner Ingka says campaigns help boost store visits and sales") at the fair, which runs until May 5. The whole [global economy](https://www.financedigest.com/global-economy-seen-facing-a-challenging-year-eurochambres.html "Global economy seen facing a challenging year -Eurochambres") is fairing poorly at the moment, and the fair won’t change that. (Ellen Zhang David Kirton; Writing by Marius Zaharia; Editing by Tom Hogue) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---