China sues global companies at major import exhibition despite Covid controls

China has ended a leading import trade fair that aimed to increase foreigners’ access to its market, even as the government’s strict coronavirus measures continue to curb international trade with the country.

The China International Import Expo in Shanghai, one of the world’s largest trade events and a personal project of President Xi Jinping since its launch in 2018, has hosted more than half of the largest multinational companies, organizers said.

The event, which was partly held virtually last year, comes at a defining moment. Chinese economy is facing increasing pressure from the government’s coronavirus policy, weakening trade data and growing scrutiny of its reopening outlook.

While foreigners were barely in attendance at the massive 59-acre convention center near Shanghai’s Hongqiao Airport, almost 500,000 people attended the glittering booths where companies showcased their latest products and technologies.

Chinese authorities still require a week of hotel quarantine for arrivals from overseas, and unlike previous events such as the Beijing Winter Olympics,closed loop” was not created to facilitate the participation of foreigners in the exhibition. The exhibition has also enforced its own Covid-19 protocols, including requiring entry with a negative PCR test result within the last 24 hours.

At the booth of Danish group Arla Foods Ingredients, Shanghai-based Asia head Alexander Leufgen said some customers from China and overseas have struggled to get to the event due to pandemic measures. He added that the company organized a separate event for them in the city center.

“This is a strict regime,” said Andreas Thorud, Chinese director of the Norwegian Seafood Council. He added that Norwegian seafood exports to China nevertheless rose 4% year-on-year in volume and 46% in value, setting a record.

“When it comes to Norwegian seafood in the Chinese market, the numbers speak for themselves,” he said.

Chefs push food carts during the China International Import Expo in Shanghai on Monday.

The exhibition was held under strict Covid-19 regulations and participants were required to have a negative PCR test within the last 24 hours © Alex Plavevski/EPA-EFE/Shutterstock

This growth highlights the huge attractiveness of the Chinese market for foreign exporters, despite the restrictions and trade disruptions caused by the pandemic. In 2020, China briefly suspended imports of salmon from Europe after the outbreak was linked to the Xinfadi wholesale market in Beijing. Covid cases near ports have sporadically hampered trade.

Leufgen said his company has recorded double-digit revenue growth in China this year and the country remains an attractive market. “One of the side effects of Covid-19 has been that people have become more aware of their health. [in China] increased,” he said.

Official trade data this week showed that Chinese imports, which surged at the start of the pandemic, fell for the first time last month from 2020, with exports also falling despite forecasts for a 4.5 percent increase. The economy grew 3.9 percent in the third quarter, well below the government’s target of 5.5 percent for the year.

Several representatives of foreign businesses were able to participate in the fair only remotely, via videoconference, which was almost entirely attended by local media. Dave Nicholas, director of New Zealand dairy company Hoeslandt, said China is “a great opportunity for all New Zealand companies in the dairy industry”, adding that he looks forward to traveling to China again after his last visit in 2019.

Domenico Monge, head of Italy’s largest pet food brand Monge, reiterated that China was a “great opportunity” but pointed to challenges in the market, including domestic competition.

In Friday’s opening remarks via video link, Xi said China remains committed to the “fundamental national policy of opening up to the world,” adding that it “will work with all countries and all parties to share opportunities in its huge market.” .

But he said nothing about further loosening of Covid controls. There are rumors about a possible opening market fluctuations in recent weeks.

At the Norwegian Seafood Council booth, Torud said it was important that the trade event took place despite the restrictions. “Right now, we are seeing CIIE go according to plan,” he said. “China is not open yet, but when it is, you have to be ready.”

Additional Report of Wang Xueqiao in Shanghai