EU lockdowns warp buying habits

Chinese international trade companies participating in the ongoing 128th China Import and Export Fair, which is also known as Canton Fair, have expressed confidence in the European Union market despite uncertainties brought by the COVID-19 pandemic. 

Xianfeng Ceramics is a producer of daily-use ceramic products in Hunan province. In recent years, it has established a presence in the United States, the EU, the United Kingdom and Japan. Twenty percent of its exports go to the EU and 30 percent go to the UK.

Lin Rui, general manager of the company, said sales in the EU have yet to recover to pre-pandemic levels because its clients there are mostly small businesses, which are less resilient when faced with crises. Many small shops and community stores are struggling to stay open due to the pandemic. This is in contrast to the big supermarket chains in the US, where orders are relatively stable.

“However, the EU market as a whole is still slowly recovering and some regions have even reported a rebound in sales,” Lin said. He added that the German market is doing particularly well — clients are regularly placing orders, although mostly in small amounts.

“I hope to find more new business opportunities by participating in the Canton Fair,” Lin said. “So far, we have established contact with some new clients at the fair.”

It’s a different story with food companies. Chen Zihao, director of foreign trade at Luobawang Food based in Guangxi Zhuang autonomous region, said river snail rice noodles had never entered the EU market until recently. 

“But now the situation is changing,” Chen said. The company shipped the first batch of orders to the EU in September and has received intents for cooperation from companies in Germany, France, Italy and Spain.

Although the EU currently accounts for only 5 percent of the company’s exports, Chen is optimistic about the market and believes it has great potential. 

Despite all the uncertainties, Chinese foreign trade companies are continuing to explore how to do better in the EU market, especially with the help of high-profile international trading platforms such as the China Import and Export Fair.