The China International Import Expo Allures U.S. companies

It is exciting to the world, including in the United States, that China has mobilized more than 60,000 companies to buy imported goods ahead of the China International Import Expo this month held from November 5-10 in Shanghai. It is expected that many exciting announcements will be made leading up to and during the Fair.

With industries attending included from Consumer Electronics & Appliances, Apparel – Accessories & Consumer Goods, Auto, High End Intelligent Equipment, Food & Agriculture, Medical Equipment, Health Care products, and Trade in Services, major players from the U.S. are registered.

An exhibitor displays a coffeemaker during a pre-expo buyer and supplier matchmaking meeting of the 2018 China International Import Expo (CIIE) in Shanghai, east China, July 26, 2018.[Photo: Xinhua]

From the manufacturing sector, attending U.S. companies include companies such as A.O. Smith, General Motors, Ford, Tesla, Jeep, Applied Materials, Caterpillar, Deloitte and others.   In Health Care and Services, and data technology such U.S. companies as Herbalife, Johnson & Johnson, Deloitte, Facebook and Google are attending.  

Despite the on-going trade frictions, and the U.S. mid-term elections ahead, the allure of the China market remains strong.  In short, U.S. and China companies want to do business together and investing here and selling to the China market is critical to diversified trade and their bottom line.   In fact, from the U.S. side, both state and city level delegations are coming from multiple locations, these include local U.S. city mayors, state delegations and business associations.   In fact, many U.S. visitors and business people are still clamoring for ways to get into the fair even at this late stage.  

The Trade Fair marks China’s further opening to the world, and has heavy focus on transactional successes announced from the Fair as directed by the Central Government. These positive trade results are highly anticipated and will make China’s global trade importance even more alluring and relevant than ever.   Despite the U.S. federal government current position, at the U.S. local and state level U.S. companies cannot afford to be left behind and have made the determination to be at the Fair.

What do American companies expect from China Import Trade Fair?   Even while trade frictions will remain to exist for at least the medium term, or longer, expectations are high for what can be achieved at the Import Fair.  U.S. companies employee hundreds of thousands of Chinese, and long term business is established here for the long term.   With a country the size of China, it is not an option for U.S. companies to not be here, or to not invest here.  Recently Tesla announced their major investment in Shanghai Pudong area, showing their commitment to China, the importance of being close the vast consumer market, and Tesla confidence in China’s long term importance.  

For U.S. companies attending the trade fair, it is anticipated the message brought back to the U.S. will be positive and will strengthen U.S. companies resolve to export and to invest in China.

As I have said in my past columns, it is imperative the world’s top two (two big brother) trading economies continue to engage in productive trade discussions.  President Trump will be meeting President Xu face to face in Argentina later this month.  While it’s yet unclear, many stakeholders in both countries have high hopes some major breakthroughs and concessions will occur.   Ongoing, these current bilateral friction these times reflect both a new era of both upside potential and requirement for extensive and new risk management analysis, new methods, new alternatives.  Okay, time to enjoy the upcoming China International Import Expo! 

Note: Scott D. Williams is the Co-Founder and Executive Governor of The US China Investment Council based in Shanghai, and Chairman of BMD Capital Partners. The article reflects the author's own views.