The just-concluded 89th China Export Commodity Fair netted business deals worth a record US$15.8 billion during its 12-day session, increases of 5.4 percent and 15.6 percent over last year's spring and autumn sessions, respectively.

The fair, held in Guangzhou, capital city of south China's Guangdong Province, is viewed by trade experts as the prime indicator for measuring China's foreign trade performance, since its volume of export deals account for one-tenth of China's total exports.

Trade experts say that this has again proven their cautious optimism about China's export performance this year, despite uncertainty of the world economy triggered by the slowdown of the American economy.

Zhou Shijian, a trade expert with the Ministry of Foreign Trade and Economic Cooperation, said a moderate growth in China's exports is achievable this year, provided great efforts were made.

He admitted that the sluggish US economy will inevitably have a negative impact on China's exports to the US, since the US accounts for one fifth of China's total exports.

"But from the global perspective, the world economy is forecast to grow by about three percent this year. Therefore, there is some potential for accommodating China's export growth if it can properly readjust its export strategy, optimize its mix of export commodities and markets, and maintain its export-friendly policies. "

During the fair, the value of China's export deals signed with US importers decreased by 0.1 percent, but the value of its export deals signed with the European Union increased by 1.7 percent.

But the volume of export deals struck with China's traditional trade partners in Asia, and its emerging markets, including Africa, Latin America and the Middle East, has grown by 10 percent to 30 percent.

Experts say the robust growth in exports to the emerging markets has made up somewhat for the loss in the US market.

"It also shows that the strategy China has adopted since the 1997 Asian financial crisis to diversify its export markets has produced marked results," said Zhou.

Cao Xinyu, deputy president of the China Chamber of Commerce for the Import and Export of Textile Products, said the volumes of textile export deals signed with importers from the US, the European Union and Japan dropped, but impressive growths were recorded in textile exports to the markets of Africa, Vietnam and Canada.

There is still something China can do to consolidate its exports to the US and Japan, said the experts.

Zhou explained that most of the products China exports are labor-intensive and cheap products, such as garments, footwear and toys.

He said that these products are more attractive to consumers in the US and Japan, as their demand for expensive consumer goods may be weaker in times of gloomy economic prospects.

At the trade fair, business involving such production materials as steel, coke, cement and hi-tech parts was not brisk, but there was a rapid growth in the volume of export deals for consumer goods, electronic products and home appliances.

(Xinhua 04/29/2001)