VZCZCXRO3681
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #1183/01 3040553
ZNR UUUUU ZZH
R 310553Z OCT 07
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6601
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASH DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 001183 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PGOV CH
SUBJECT: Canton Fair: Seizing the Opportunity to Promote U.S. 
Exports 
 
(U) This document is sensitive but unclassified.  Please protect 
accordingly.  Not for release outside U.S. government channels.  Not 
for internet publication. 
 
¶1. (SBU) Summary: In the first ever U.S. Consulate-hosted forum at 
the Canton Trade Fair, U.S. government and business representatives 
discussed - with an appreciative Chinese audience - American goods 
and services available for import and the impact of export controls 
on PRC companies doing business with the United States.  The 
Consulate intends to take advantage of frequent trade fairs in south 
China and work with the U.S. business community to promote U.S. 
products in this rapidly growing market.  End summary. 
 
Expanding Focus on Imports 
-------------------------- 
 
¶2. (U) This year's 102nd China Import Export Commodities Fair 
(Canton Fair) continues the tradition of bringing together foreign 
buyers with predominantly Chinese producers to negotiate contracts 
for a wide variety of retail, wholesale and manufacturing products. 
According to news reports, the 102nd session has attracted 
participation from over 15,000 enterprises and the first day of the 
Fair drew over 40,000 visitors.  More than half of the visitors came 
from Asia, with almost 9,000 from Europe, over 6,000 from the 
Americas and over 3,000 from Africa.  According to reports total 
attendance was about 180,000 people, less than at the 101st Fair. 
 
¶3. (U) This Fair, like the 101st, featured an exhibition area for 
foreign importers who sought orders from local Chinese firms.  Even 
though this session's import section at nearly 20,000 square meters 
occupied twice as much floor space as the last session's, it still 
only accounted for 3 per cent of the 620,000 square meter total 
exhibition area.  In addition to an expanded import exhibition 
section, Canton Fair organizers invited foreign consulates in 
Guangzhou to make presentations on importing each nation's products 
to China.  Presentations were sponsored by a total of five 
Consulates General in Guangzhou -- the United States, United 
Kingdom, Australia, France and Korea. 
 
Encouraging U.S. Exports to China 
--------------------------------- 
 
¶4. (U) The U.S. Consulate's presentation was an unprecedented 
outreach effort. Over 100 attendees packed the Huacheng Conference 
room of the Pazhou Complex.  The agenda featured a diverse array of 
USG and U.S. business presenters.  Conducted in Chinese, the session 
was led by the Consul General, with presentations by Congen's 
Commercial Officer and a representative of the Canton Fair.  The 
Department of Commerce's Bureau of Industry Security (BIS) Export 
Control Attache Jeannette Chu traveled from Embassy Beijing to 
present information on the U.S. export control program for importing 
sensitive technologies to China.  Four U.S. companies also 
contributed their experiences on importing U.S. products and 
services to China. 
 
¶5. (SBU) The 90-minute U.S. program closed with a question and 
answer session for attendees.  In addition to commonly-asked visa 
questions, attendees used the opportunity to ask USG representatives 
about licensing of sensitive technologies and where to find 
additional information.  Export Control Attache Chu responded by 
further clarifying many details of the export licensing program and 
directing participants to the BIS website on importing products such 
as U.S.-manufactured chemicals and equipment to China.  Although 
participants seemed eager for details about importing U.S. products 
to China and directly investing in the United States, it was the 
general consensus of USG and business participants that more 
specific audience recruitment and more targeted presentations would 
be useful at future trade fair events.  Several attendees personally 
expressed their appreciation for the Consulate's outreach efforts 
after the program concluded. 
 
The UK Experience 
----------------- 
 
¶6. (SBU) The 102nd Canton Fair was also the first time the UK 
Consulate General participated in the fair.  UK organizers described 
results very similar to the U.S. experience.  They reported robust 
turnout, but expressed concerns that the audience could have been 
better targeted. They also commented that future presentations 
should have a larger venue.  Unlike the U.S. event, the UK 
presentation was conducted entirely in English with simultaneous 
interpretation, but UK officials lamented that no British companies 
participated.  They were also disappointed - as were we - with 
paltry media coverage.  Fair organizers invited the UK to organize a 
special pavilion in the main exhibition area at the next Canton 
 
GUANGZHOU 00001183  002 OF 002 
 
 
Fair, but the UK Consulate remained noncommittal. 
 
Take it on the Road 
------------------- 
 
¶7. (SBU) Comment.  Trade fairs focusing on specific industries and 
locations occur at least once a week in south China.  The success of 
Congen Guangzhou's program at the 102nd Canton Fair highlights an 
opportunity for USG and the U.S. business community to use these 
forums to increase engagement with Chinese companies and industries. 
 Chinese officials are eager to use trade fairs to help balance 
China's trade account; we have been told numerous times in the past 
that we should exhibit at local fairs and should organize as a way 
of promoting our products.  Export control and visa regulations are 
locally perceived to be huge obstacles to increased U.S.-China 
trade, despite the reality that only an extremely small fraction of 
total trade between the countries is negatively affected by these 
policies.  Increased attention to trade fair public outreach can 
help counter lingering Chinese misperceptions and increase demand 
for U.S. products in this growing market.  End Comment. 
 
GOLDBERG