High-tech push at Canton Fair highlights China’s altering export technique | UNW

Some firms at the fair report that enquiries and sales for solar panels, inverters and wind turbines have risen by as much as 50 per cent since the latest Iran conflict began. 

For buyers like Sachin Inamdar, who travelled from India, the appeal is clear: “Getting to see (so many) new technologies in one place is worth the visit.” 

He added that he is exploring alternative energy solutions amid growing demand back home amid a global shift away from fossil fuels. 

INNOVATION NOT A SILVER BULLET

Still, analysts caution that innovation alone may not be enough to sustain China’s growth. 

The country placed tech as a key strategic pillar in its 15th Five Year Plan. 

“The Iran war hits global purchasing power indiscriminately, even buyers of chips and services face rising operating costs,” said Li. “The honest assessment is that tech buys China resilience, but not immunity.” 

That makes China’s “dual circulation” strategy of boosting domestic consumption while expanding trade with non-Western markets increasingly important, he added. 

This comes as national security concerns remain an impeding factor, with China still facing tech export restrictions from the United States. 

The European Union also recently stopped funding clean projects containing Chinese inverters. 

“The bigger story is that China’s export mix is shifting up the value chain, as you might be seeing in EVs, solar, servers and batteries,” said Liao. 

“These are replacing labour cost intensive industries like those producing T-shirts and toys. That tech push can insulate the top line but doesn’t really protect the millions of small- and medium-sized enterprises at non-tech industries.” 

China’s exports grew 14.7 per cent in the first quarter, but momentum slowed to a five-month low in March – a sign that challenges may lie ahead. 

The Canton Fair runs until May 5, with final sales figures expected to offer a key gauge of the health of China’s export engine.