From Made in China to Created in China, 67 years of the Exhibition that shaped the Global Trade.

In the spring of 1957, the first Canton Fair was held in the Sino-Soviet Friendship Hall in Guangzhou. None of the first 1,472 exhibitors could have imagined that 67 years later, the Canton Fair would become the leading worldwide exhibition in more than 13 product categories, ranging from electronics and hardware to fashion and decorations. Boasting over 30,000 exhibitors in 2024, it is hailed as China’s No.1 Fair and the barometer of China’s foreign trade.

Initially, most of the exhibits were mainly raw materials, as the manufacturing process was at a nascent stage at that time. Gradually, the ratio of manufactured goods rose from 20% in 1957 to 85.6% in 1995, and it is even higher now. Overall, the export market for Chinese products has expanded and adapted to changing global trade dynamics, with a focus on branding, production, and market diversification.

Navigating Trade Winds: The Canton Fair’s Political and Economic Resilience

Economics and politics always go hand in hand, and the Canton Fair was defined by the political environment but also greatly influenced that same environment through the promotion of new technologies and innovations and by creating new business models and collaborations. For example, the tariff on China-made air conditioning units exported to the US increased from around 2% before 2019 to about 25%. This led to a decrease in exports to North America, while exports to other regions increased, forcing Chinese brands to explore new markets.

A significant milestone occurred in the spring of 1972, after the publication of the Sino-US Joint Communiqué, when 42 American businessmen were invited to the Fair. This was the first time US and Chinese businessmen attended the meeting after more than 20 years of Sino-US trade disruption.

The Canton Fair has weathered embargoes, trade wars, and pandemics but still managed to contribute a strong 50 million USD just after the pandemic with a steady but rising perspective.

From Underdogs to Innovators: The Rise of Chinese HVAC Products

Among the many product categories displayed at the Canton Fair, HVAC products have been prominent for years. Chinese room air conditioners and heat pumps have established global dominance, reaching 70% for RAC and 35% for heat pumps. Initially seen as lower quality, Chinese HVAC products have dramatically improved due to increased investment in research and development. Today, they meet international standards and are highly competitive.

Efficiency has also improved significantly, driven by stringent energy efficiency standards, resulting in energy savings and reduced carbon emissions. Innovation has been a key driver, making China a global leader in HVAC technology, particularly in heat pumps and air conditioning systems, leading to advanced, environmentally friendly, and energy-efficient solutions.

From “Made in China” to “Created in China,” the Canton Fair showcases the remarkable journey of Chinese innovation and excellence.