Overview

• US orders for Chinese goods have drastically declined at the Canton Fair, with many buyers delaying shipments or halting orders entirely due to the 145% tariffs imposed by the US.
• Chinese exporters are rapidly diversifying their market focus, targeting regions such as Southeast Asia and emerging markets like Nigeria to offset losses from the US market.
• Some companies are exploring moving production out of China to Southeast Asia to bypass US tariffs, though logistical challenges and capacity issues remain significant hurdles.
• The economic impact of the tariff escalation is raising concerns about potential job losses and reduced working hours for Chinese workers dependent on export-driven industries.
• Attendance from US buyers at the Canton Fair has significantly dropped, with only 10% of registered overseas buyers coming from the US and Europe, compared to 20% in previous years.