DgcityChina’s annual import expo closed in Shanghai with a record $85.45 billion in intended one-year deals, a modest increase organizers held up as proof the country remains a vital market for foreign companies even as its trade surplus with the rest of the world keeps growing.
The total value of preliminary agreements at the ninth China International Import Expo rose 2.3 percent from the previous edition, according to the expo bureau. Intended deals are not binding contracts, but the figure has become the event’s headline benchmark and is closely watched by foreign governments for evidence that Chinese buyers are actually placing orders.
Held at a vast exhibition center near Shanghai’s Hongqiao transport hub, the expo drew thousands of companies from more than 100 countries, with food, medical equipment, industrial machinery, consumer goods and green technology among the busiest halls. Several overseas brands used the event to launch products globally rather than simply pitch their Chinese distributors, a shift organizers highlighted as evidence of the country’s role as a trend-setting consumer market.
Politics was never far from the surface. The expo opened days after China confirmed its trade surplus had crossed $1 trillion for the year, and the gap between Beijing’s message of opening up and the reality of its export dominance has become hard for foreign capitals to miss. Several European and American executives used appearances to repeat calls for easier market access, fairer government procurement rules and stronger protection of intellectual property.
Still, the practical signings kept coming. GE Aerospace alone announced more than $12.9 billion in engine and service agreements, including a large order from China Eastern for Airbus jets. Medical-device makers, luxury brands and food exporters from beef producers to dairy companies all reported strong interest from Chinese distributors looking to serve a middle class that still buys premium imports even as it cuts back elsewhere.
The record total gives Beijing a useful talking point ahead of expected meetings between the Chinese and U.S. leaders later this month and at the December Group of 20 summit. Whether the expo’s deals translate into sustained imports will be clearer over the coming year, when many of the preliminary agreements are supposed to become shipments through Chinese ports.
