Chinese firms treat trade fair as testing ground for Asean market ambitions

A trade fair in the southern Chinese city of Nanning has become a testing ground for exporters shifting their focus to Southeast Asia.

Attracted by the region’s fast-growing economies and young consumers – and facing slowing demand in the West – many Chinese companies see the annual event as a potential gateway to court buyers and expand their overseas footprints.

Li Wenqi, a manager at an electric scooter and battery manufacturer in Jiangxi province, is among the exporters seeking new opportunities this year. His company has long relied on the European and American markets, but he said they were reaching their limits.

“The West is close to saturation, the Middle East is plagued by wars, and the world is only so big,” he said. “Southeast Asia, with its large population, offers huge potential.”

The China-Asean Expo in Nanning, capital of the Guangxi Zhuang autonomous region, is a major platform for the promotion of trade and investment with Southeast Asia, underscoring the 10-nation bloc’s role as China’s largest trading partner and a growing alternative to Western markets. This year’s event opened on Wednesday and will end on Sunday.

The Association of Southeast Asian Nations has become even more vital to China’s trade strategy amid the US tariff war. Soaring Chinese exports to the bloc – up 22.5 per cent year on year in August – have helped to offset a slump in shipments to the United States.

South China Morning Post