At China's largest trade fair, exporters worry about world economy
Business
Chinese traders worried about the rise in production costs
GUANGZHOU (Reuters) - Chinese exporters exhibiting their products at the country's largest trade fair said the weak global economy was hurting their businesses, with many freezing investments and some cutting labour costs in response.
People at the Canton Fair in the southern city of Guangzhou suggests China's unexpected jump in exports in March may have reflected exporters catching up with orders delayed last year by COVID curbs rather than renewed economic strength.
The first major trade event since China abruptly dropped COVID restrictions and re-opened its borders comes as sharply higher borrowing costs in the United States and Europe hit demand for Chinese-made goods.
Kris Lin, a representative from Christmas light producer Taizhou Hangjie Lamps, said this year's orders so far are down 30% from last year.
Lin said the company cannot afford to sell at lower prices, but it may look to reduce labour costs. The firm relies on contract workers who get released in September to October after the delivery of Christmas orders.
A producer of shaving devices from the eastern city of Ningbo, who asked to remain anonymous to unveil future plans, said the firm had already laid off workers and will lower prices in coming months if orders don't improve.
The worsening outlook for workers in the manufacturing industries will raise concerns among policymakers, who target 12 million new jobs across China this year, up from last year's goal of 11 million.
Dozens of Chinese suppliers told Reuters they did not intend to spend much on improving production lines this year given the weak demand.
