Three sets of latest data tell you the importance and necessity of the CIIE

Up to now, the central enterprise trading group, the National Health and Health Commission trading group, and relevant local trading groups have held a total of 85 centralized signing activities and reached nearly 600 cooperation intentions.

From the first CIIE to the present, the world has experienced the epidemic, the rise of protectionism and the restructuring of supply chains, and the world trade pattern and order have entered a new situation amid turmoil. But no matter how the situation changes, the CIIE has been held for the sixth time in one year.

Why does China insist on holding the CIIE? What does the CIIE mean to China and the world? Three sets of data may be able to answer it.

The first set of data is the exhibition data of the CIIE.

This year’s CIIE has more than 3,400 exhibitors registered, an increase of 17% compared with last year. Guests from 154 countries, regions and international organizations gathered at the "Four Leaf Clover", reaching a new high since the event was held.

The number of Fortune 500 and industry leading companies reached 289, also a record high.

The world's top 15 vehicle brands, top 10 industrial electrical companies, top 10 medical equipment companies, three major mining giants, four major grain merchants, and five major shipping companies were all present.

If divided by continent, according to data from the previous five CIIEs, the willingness of Asian and American companies to participate in the exhibition has increased steadily. Especially for exhibitors from the Americas, although the number of exhibitors and exhibition area rank behind Asia and Europe, the exhibition area has shown a clear growth trend, with their proportion rising from 16.3% in 2018 to 22.2% in 2022.

The number and area of ​​European companies have both declined in 2022, with the proportion of companies participating in exhibitions falling from 33.3% in 2021 to 28.5% in 2022, and the proportion of exhibition area falling from 36.8% in 2021 to 28.5%. This is hard not to think of the impact of the Russia-Ukraine conflict and the energy crisis on the European economy - the EU's growth in 2022 will be only 3.3%, lower than expected.

However, changes in data and feelings in local areas do not mean that the CIIE’s appeal has declined. Judging from the total exhibition area, the demand from exhibitors has increased a lot since the first session. The total exhibition area of ​​the CIIE has expanded from 270,000 square meters in the first session to about 360,000 square meters, and this year it hit a new high of 367,000 square meters.

Some people leave and some join. The CIIE brings new friends every year. This year’s national comprehensive exhibition saw 11 countries participating in the exhibition for the first time and 34 countries participating offline for the first time.

The countries along the Belt and Road have basically remained stable every year, and the exhibition area has increased from 44,000 square meters at the first CIIE in 2018 to nearly 80,000 square meters, an increase of about 30% from the previous session.

The CIIE does not favor the poor over the rich. This year, about 100 companies from 30 least developed countries continue to enjoy the free booth policy.

For some time, there have always been some discordant voices, lowering China's "expectations" and badmouthing China, but the numbers do not lie. This time, many executives from foreign companies traveled thousands of miles to attend the CIIE. It is enough to show that the irreplaceable vitality and value of the Chinese market lies there.

The second set of data is the dividend effect of the CIIE.

The turnover of real money can best illustrate the effectiveness of the CIIE.

The intended transaction volume of the CIIE has shown a fluctuating upward trend. As of the fifth CIIE, the cumulative intended transaction volume has reached nearly 350 billion US dollars.

The transactions at this year’s sixth CIIE were also hot. The Shanghai trading group’s “first order” landed in Qingpu District, reaching a purchase order of US$300 million, mainly for silicone products. The Changning Trading Group also closed orders worth US$168 million on the first day. Foreign buyers are even more enthusiastic. The trading group in Jiangsu Province alone has registered a total of 11,000 units and 42,000 people.

Why is it that every time the China International Import Expo is held, trading groups from all over China can "buy, buy, buy"?

Because there are companies from all over the world bringing the latest and greatest products to the Chinese market. In the first five CIIEs, about 2,000 new products, new technologies and new services were launched. The sixth CIIE will also successively release and display more than 400 new technologies, new products and new services.

The effect of the CIIE goes beyond the exhibition itself.

The shrewd Chinese people took the opportunity of the CIIE to integrate procurement and investment promotion, and connected with exhibitors. The "results" during the exhibition will be "implemented" after the exhibition. The CIIE is not only a platform for international procurement, but has also developed into a platform for investment promotion, cultural exchanges, and open cooperation in various places.

The Shanghai Business Development Research Center compiled the investment status of 2,567 exhibitors from 2017 to September 2022 in the "Exhibitor Manual" of the Fourth China International Import Expo. Data shows that 328 companies invested in 876 new companies across the country after participating in the exhibition, with a conversion rate of 12.8%. Among them, the largest number of new companies will be established in 2021, with 180 companies accounting for 20.5%.

Among them, the automobile exhibition area has the highest investment conversion rate among exhibitors.

Data shows that the exhibitor conversion rate in the automobile exhibition area is 49%. This is due to the leapfrog development of global new energy vehicles in the past few years and is also the natural result of China's sound supply chain production system.

As the host city of the CIIE, Shanghai has benefited the most from the spillover effects.

Data shows that Shanghai attracts the largest number of new companies established by CIIE exhibitors, whether by city or province. This is not only because the CIIE is held in Shanghai, but more importantly, Shanghai, as China’s window to open up, has an excellent business environment. Moreover, the hinterland of the Yangtze River Delta provides complete supply chain support and industrial supporting cooperation.

From 2018 to 2022, the cumulative total actual use of foreign investment in Shanghai reached US$101.3 billion, an increase of 20.5% compared with the previous five years.

Moreover, from January to September this year, Shanghai's actual use of foreign investment continued to maintain positive growth based on last year's high base, with actual foreign investment exceeding US$18.6 billion. The number of regional headquarters of multinational companies and foreign-funded R&D centers in Shanghai also increased by 49 and 20 respectively.

The third set of data is global trade data.

Perhaps the image of China as a big manufacturing and exporting country is too clear, and many people forget that China is also a big importing country.

In 2022, China's import volume will reach US$2.72 trillion, an increase of 966 times compared with 1978! China's imports account for 10.8% of the world's total imports, making it the second largest import market after the United States.

Judging from import data, China's importance in the global market has further increased. In 2018, the first year of the CIIE, China’s imports accounted for 10.3% of the world’s total, and in 2022, this proportion will increase to 11.9%.

After the outbreak, the world's overall imports showed a trend of violent fluctuations, while China's imports remained stable despite the larger volume. In 2020, China's imports fell by only 0.5%. In 2021, the increase will be as high as 30.1%.

After entering 2023, affected by high inflation, local hot wars and other factors, the demand for goods in most countries has declined, and global trade continues to decline. Imports from developed countries such as the United States, the European Union, and Japan began to enter negative growth in March this year.

However, against the background of sluggish global demand, in the first 10 months of this year, China's total import and export of goods trade was 34.32 trillion yuan, a year-on-year increase of 0.03%. Imports also achieved positive growth in October.

As a major foreign trade center in the country, Shanghai's performance is particularly impressive. In the first nine months of this year, Shanghai's import and export reached 3.17 trillion yuan, still achieving a growth of 2.7% compared with last year's high base. Especially in September, Shanghai's import and export volume reached 374.47 billion yuan, the highest value in the past 12 months.

China's trading partnerships have undergone some changes over the past few years, but have generally remained stable. The proportion of imports from the United States and the European Union has decreased, while relations with Belt and Road countries and ASEAN have become closer.

The demands of the Chinese market are also undergoing some changes.

Mechanical and electrical products have been the largest category of imported products in China in the past five years, but mineral fuels, the second largest imported product, have maintained growth in the past five years, rising from 13.6% to 17.1%.

Since the CIIE, Shanghai’s import proportion of high-tech products, electronic technology, and integrated circuits has increased.

In the first three quarters of this year, a noteworthy data is the rapid growth of imported consumer goods in Shanghai, with the total amount reaching 422.23 billion yuan, an increase of 9%, accounting for 22.6% of the total import value during the same period, and increasing the overall import growth rate by 1.9 percentage points. Among them, imported cars were 57.95 billion yuan, an increase of 4.5%; pharmaceuticals were 93.04 billion yuan, an increase of 20.8%.

The latest report released by the World Trade Organization states that global trade will continue to be sluggish starting from the fourth quarter of 2022, and the forecast for global merchandise trade growth in 2023 has been reduced to 0.8%. As a major trading country, China cannot be alone. Whether it is changes in numbers or feelings of real demand, I believe it will be difficult to be as optimistic as before. But accusations, criticism, and even prejudice that ignores facts cannot change the importance of the Chinese market. China is also well aware that it must seize the opportunity to strengthen its own trade framework through a more flexible and inclusive open economy. The CIIE, which has been held unfailingly for six consecutive years, clearly shows China's greatest sincerity and determination.