VZCZCXRO5150
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0249 1260906
ZNR UUUUU ZZH
R 050906Z MAY 08
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 7086
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASH DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC

UNCLAS GUANGZHOU 000249 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD EINV ECON PGOV CH HK TW
SUBJECT: 103RD CANTON TRADE FAIR OVERALL NO SLACKENING, U.S. 
ATTENDANCE DOWN 
 
REF: 2007 GUANGZHOU 1186 
 
(U) This document is sensitive but unclassified.  Please protect 
accordingly. 
 
¶1. (SBU) Summary: Officially the 103rd Canton Fair was a success 
with slight increases in attendance and orders, but local travel 
industry contacts complained of lower participation from U.S., EU, 
Japanese and Korean buyers. Security was notably tighter with 
numerous seminars cancelled.  End summary. 
 
Slight Increase Overall, Decline in U.S. Attendance 
--------------------------------------------- ------ 
 
¶2. (U) Press reports announced that total attendance for the 103rd 
China Import Export Commodities Fair (Canton Fair) had increased 1.3 
per cent over the previous fair held in October 2007 (102nd 
Session).  A total of 192,013 visitors visited the fair and placed 
orders valued at USD 38.23 billion.  This represented a 2.1 per cent 
increase in the value of orders placed compared to the October 2007 
session and a 5.1 per cent increase over the Spring 2007 (101st) 
fair. 
 
¶3. (U) Continuing a trend seen at the 102nd Session, official 
reports indicated that orders for exports to the Middle East and 
Southeast Asia increased by 9.6 percent and 15.9 percent, 
respectively.  Among products, machinery and electric products 
industries also continued increasing, accounting for USD 16.82 
billion of orders, an increase of 7.7 per cent.  These deals 
represented 44 percent of all contracts signed. 
 
¶4. (SBU) However, orders from the United States, EU, Korea and Japan 
declined, with attendance from these countries also falling by 7 to 
10 per cent.  Unofficial accounts corroborated these reports of 
lower attendance.  A China Southern Airlines executive commented 
that attendance was very poor this session with "almost no one" 
coming from the United States.  Major hotels in Guangzhou also 
complained of fewer bookings during this session.  By product 
category, official reports showed declining orders for consumer 
product exports like porcelain, furniture, plastic wares and 
textile/apparel goods. 
 
Increased Security 
------------------ 
 
¶5. (SBU) Security at the 103rd Session was notably tighter with 
Chinese exhibitors required to present cleared criminal background 
checks before being issued entrance credentials.  Fair organizers 
also cracked down on freelance interpreters and other service 
personnel, requiring registered buyers and sellers to only use 
certified providers.  Numerous seminars that are normally held 
concurrently at the convention center were all cancelled by the fair 
organizers, citing security concerns.  South China AmCham 
representatives commented that they were able to proceed with a 
planned presentation only because they had made separate 
arrangements to host the event at a nearby hotel. 
 
GOLDBERG