EXPORTERS of motorcycles, tractors, photocopiers and Christmas tree lighting have joined thousands of other companies peddling their wares at China’s largest trade fair Monday. Many of these exporters have something in common — uncertainty over future U.S. orders amid a trade war with the United States. The turmoil has added to concerns over the health of the Chinese economy, already under pressure from a cooling property market, a crackdown on corporate debt and risky lending practices, and a nationwide anti-pollution campaign. The escalation of the Sino-U.S. trade dispute has taken many Chinese exporters by surprise. At the spring session of the twice-a-year Canton Fair in Guangzhou, only a quarter of the exporters whom spoke to media said they expected a full-blown trade war. As exporters gather at the autumn session of the three-week gathering that started Monday, a sombre outlook is expected to pervade the tens of thousands of exhibition booths at the fair. “Our existing U.S. orders are relatively stable, but our U.S. clients are not increasing their orders,” said an official at a Guangzhou-based battery maker, one of many facing higher U.S. tariffs on Chinese batteries. “We’re keeping prices stable and swallowing the tariffs ourselves,” the official said. “The impact of the trade war is not too obvious yet because the U.S. tariffs have not filtered down to some sectors yet,” said Joe Chung, owner of a ceramic tile manufacturer in Guangdong. “The worry is not just about the United States. With exports to the U.S. slowing, there will be increased competition for other overseas markets,” Chung said. Chinese exporters of goods not yet on any U.S. tariff retaliation list vary, including products like toys, sewing machines and wigs. China’s foreign trade growth may slow in the fourth quarter, the country’s customs agency said Friday.(SD-Agencies) |