European Chamber in China Critiques Upcoming Shanghai Trade Fair as a ‘Political Showcase’ – Reuters

By Brenda Goh

SHANGHAI – On Friday, the European Union Chamber of Commerce expressed concerns regarding the upcoming trade fair in China, labeling it more of a "political showcase" than a legitimate business opportunity. The chamber called for more concrete actions to restore confidence among European companies operating in the region.

The China International Import Expo (CIIE), set to take place in Shanghai from November 5 to 10, was initiated by President Xi Jinping in 2018 to bolster China’s free trade image and address criticism surrounding its trade surplus with various partners.

Premier Li Qiang is set to deliver the opening address at the event, which will also be attended by Australian Prime Minister Anthony Albanese.

However, the chamber highlighted that, despite the CIIE’s goal of enhancing global imports and promoting China’s reform agenda, the country’s trade surplus with Europe has increased significantly over the past five years.

Carlo D’Andrea, vice president of the chamber, remarked during a briefing in Shanghai, "It’s more of a government affairs event—a marketing endeavor with very little emphasis on actual business. You could say the CIIE has evolved into more of a political showcase rather than a true business event."

He further noted that European companies are becoming increasingly disillusioned as symbolic gestures replace the tangible outcomes necessary to rebuild business confidence.

As of now, the fair’s organizers have not responded to inquiries for comment. China has indicated a willingness to increase imports from Europe in response to EU complaints regarding an uneven playing field and the politicization of the business environment.

A summit between the EU and China is planned for later this year, with the European Union’s top diplomat, Josep Borrell, having visited recently along with other high-ranking EU officials.

In a survey conducted last month by the chamber, which garnered 116 responses from its members, participation rates have fallen from 42% at the inaugural CIIE to 32% this year. Those who chose not to attend cited the decreasing value of investment opportunities and limited policy changes as primary reasons.

Although 59% of respondents acknowledged benefits from government engagement during the event, only a quarter reported closing any business deals at last year’s fair, a steep decline from 50% in 2018.

The chamber emphasized that European businesses would prefer to see the CIIE "shift away from politicization" and enhance its focus on the business implications, alongside implementing concrete policies to facilitate market access.

According to Chinese state media, over 60 countries and three international organizations, along with 289 of the world’s top 500 companies, are slated to participate in this year’s CIIE, featuring prominent firms such as Micron, Nestle, and Burberry.

Last year, the fair recorded $73.52 billion in ‘intentional’ deals, reflecting a 3.9% increase from the previous year.