The Canton Fair, the City of Guangzhou & Guangdong Province

Canton Fair

The Canton Fair is held twice a year (Spring & Fall) in the city of Guangzhou. Guangzhou, the capital of Guangdong Province, is a two-hour train ride from Hong Kong.
The official name of the Canton Fair is The Chinese Export Commodities Fair. The Fall 2008 session has three parts:
 

Phase I (Oct 15 – 19)	Phase II (Oct 24 – 28)	Phase III (Nov 02 – 06)
Appliances, Electronics & Electrical	Gifts	Office, Cases, Bags & Recreation
Machinery, Tools, Vehicles	Home Decorations	Textiles & Garments
Industrial & Construction Materials	Consumer Goods	Foodstuffs, Tea & Native Products
Lighting Chemical		Shoes
International Pavilion		Medical & Health Care

The 104th Canton Fair.

Operating since 1957, the Fall 2008 Canton Fair is the 104th Session.
The Official website of the Canton Fair is: www.cantonfair.org.cn
Go to this website for more complete information and to register for a buyer's card. Register early for Free Admission. If you are in Hong Kong, normally, you can pick up a visa in a few hours thru any major Hong Kong travel agent.

In the early days, the Canton Fair was the single trade link connecting China to the outside world. Now, China is quite open and all of the provinces are aggressively seeking international business connections to stimulate their growth. Due to this evolution, the ‘something for everyone’ Canton Fair now faces serious competition from the industry specific fairs held in other Chinese cities. In its attempts to modernize and shake its dying dinosaur image, the Fair went to a two-phases a few years ago and now for the 104th Session, it has gone to a three-phase approach. Also, the old Liuhua section, which had come into use in 1979, and is located in central Guangzhou, between the China Hotel and the Main Train Station has now closed. For the 104th Session, the Canton Fair is now held totally at the modern, suburban Pazhou Complex, a few miles East of Tien He and East Train Station. Having everything under one roof will make it easier for visitors.

Change has been ongoing. The general merchandise Canton Fair had lost much of its luster among professional western buyers who focus on industry specific goods. The new three-phase system helps correct this issue. Also, the Western specialists have been steadily replaced with larger groups of business people from the immerging countries of Asia, the Middle East and Africa. So, even though, the world economic conditions are down, the Canton Fair continues to do well. Actual sales figures are highly illusive as the methods for reporting sales are based more on impression and braggadocio than scientific records.

Another change. In the past, the outmoded Chinese bureaucratic requirements for export licenses meant middlemen controlled the Trade Fair. In recent years, more flexible government regulations have eliminated some of this. In truth though, many small manufacturers do not wish to deal with foreigners (language and payment issues) and consequently, the wholesalers do provide a necessary service. Price lists are virtually nonexistent and old fashion haggling prevails. Consequently, a caveat emptor (Let the Buyer Beware) philosophy reigns and quality control follow-up is highly recommended.

Guangzhou

While Beijing holds the political reigns and Shanghai tightens its growing financial control, Guangzhou represents the factory muscle of China’s growth. Located at the head of the Pearl River Delta, Guangzhou’s tentacles of small industrial plants stretch in many directions and have turned the numerous farm hamlets between itself and Hong Kong into factory towns. With its dual reputations for business and dining, Guangzhou normally interrelates the two. With their ‘The mountains are high and the emperor is far away’ ambivalence toward and non-acceptance in the Beijing halls of power, the Cantonese have a reputation for possessing a ’Show me the money’ mentality.

Guangdong Province

Guangdong is the ancestral home of the Cantonese people who have fanned across the world for centuries, bring their trading skills and restaurants with them. While geographically, Guangdong is the size of Missouri, its 90 million plus inhabitants, could qualify it to be the 12th largest country in the world. With Guangdong accounting for up to 40% of China’s exports, it is also one of the larger industrial and export centers of the world.

In the 1960’s and 1970’s, Guangdong depended upon Hong Kong for its growth. Now that it has come into its own, the philosophy has flipped to ‘Who needs Hong Kong?’ and Hong Kong has started a downward tumble. As Guangdong continues to expand its lower cost ports, high priced Hong Kong is being challenged.

Guangdong has been experiencing phenomenal population growth, with a 35% jump in the last ten years. Everyday, steady streams of unrecorded potential factory workers from the north arrive at the train and bus stations of Guangzhou, Dongguan and Shenzhen. The Cantonese, Hong Kong and Taiwanese factory owners of the Pearl River Delta welcome this steady one-way flow of cheap labor.
This reality, however, is hampering China’s desires to spread industry and wealth to inland, northern and western provinces. ‘Why move to the mountains, when the mountains will move to you.’ The young follow the money; the old remain back home on the farm.