As the global trade landscape undergoes transformation, the Canton Fair still attracts 200,000 buyers and thrives against the trend, with Chinese foreign trade companies starting to 'look east'!

Original 10-16 16:19 | 35 visits

Recently, the latest data released by the General Administration of Customs shows that in the first three quarters, the total value of China's goods trade imports and exports reached 33.61 trillion yuan, hitting a new record! Among them, the third quarter saw a 6% increase, marking growth for eight consecutive quarters. Even more notably, imports and exports to countries participating in the Belt and Road Initiative grew by 6.2%, indicating that a diverse and mutually advancing international market pattern is taking shape.

 

 

Responding to tariff barriers, exploring emerging marketsFrom a 'multiple-choice question' to a 'mandatory question'

 

On October 10, U.S. President Trump stated on social media that he plans to impose an additional 100% tariff on Chinese goods starting November 1, once again straining global trade nerves.

 

 

Amid increasing uncertainties in traditional markets, finding new growth drivers has become a crucial 'must-answer question' for survival. Yet, Chinese foreign trade is shining despite the adverse conditions. On October 15, the 138th China Import and Export Fair (Canton Fair) officially opened in Guangzhou as scheduled.

 

 

The exhibition area of this session of the Canton Fair has reached 1.55 million square meters, with over 32,000 participating enterprises, both setting new historical highs. It has attracted pre-registration from more than 207,000 buyers from 217 countries and regions, a 14.1% increase compared to the previous session. Notably, buyers from Belt and Road countries account for as much as 64.9%, and the interest continues to rise.

Data from the Spring Canton Fair in the first half of 2025 shows that Middle Eastern buyers accounted for 14.3%, surpassing Europe and the US (10.5%) for the first time, becoming the region 'most active in placing orders'.

 

 

This clearly indicates that despite the restructuring of global supply chains and the unpredictable nature of external policies, global buyers still 'vote with their feet,' choosing to come to China to find the most reliable products, showing that the appeal of China's supply chain remains.

The Middle Eastern market is experiencing new opportunities from Chinese exporting companies due to its geographical, policy, and consumer advantages.

 

 

Why is the Middle Eastern market the best choice for going global right now?

 

Why is the Middle Eastern market so attractive?

 

1. Stable and predictable tariffs act as a 'reassurance' for trade.

Gulf Cooperation Council countries implement a common tariff policy, with tariffs on most products maintained at around 5%, providing Chinese enterprises with a stable and predictable trade environment. In contrast, U.S. tariff policies change frequently, making the Middle Eastern market an ideal safe haven for businesses.

 

2. Release of policy benefits, accelerating economic diversification and transformation

The International Monetary Fund (IMF) has raised its economic growth forecast for the Middle East and Central Asia to 3.5% in 2025, and expects it to further increase to 3.8% in 2026.

 

 

More importantly, the Middle East is undergoing a trade structure shift toward Asia. Over the past decade, GCC-China trade has grown by about 50%, nearly comparable to the traditional trade volume between the GCC and Europe and the United States.

 

 

Saudi Arabia

Under Saudi Arabia's 'Vision 2030,' a series of foreign investment-friendly policies have been launched. More than 30 free trade zones offer benefits such as 'zero tariffs, 100% foreign ownership, free currency exchange, and a 50-year tax exemption,' further lowering the threshold for Chinese companies to go abroad.

 

Dubai

Sheikha Mohammed bin Rashid Al Maktoum, the First Deputy Ruler and Minister of Finance of Dubai, has approved the 'Dubai Financial Sector Strategy,' planning to launch 15 transformative initiatives over the next three years.

 

 

In addition, Dubai's free trade zones (such as Jebel Ali Free Zone and Dubai International Financial Centre) offer foreign companies preferential policies including 100% foreign ownership, no foreign exchange controls, and zero taxes. At the same time, the UAE has launched the 'Digital Economy Strategy,' aiming to increase the share of the digital economy from 9.7% to 19.4% within ten years. With its highly open market environment, it has become a business hub in the Middle East.

 

3. Strong consumer spending power and huge market potential

Gulf countries such as Saudi Arabia and the UAE have a per capita GDP of $30,000 to $120,000. The latest data shows that from 2023 to 2028, retail sales in the Gulf Cooperation Council will grow at a compound annual growth rate of 4.6%, rising from $309.6 billion to $386.9 billion. Even more surprisingly, the young population in the Middle East accounts for as much as 71%, driving consumer trends in fashion, home goods, and daily necessities.

 

 

Anchoring Potential in the Middle East: How Chinese Enterprises Can Break the Deadlock

 

However, successfully expanding into the Middle Eastern market is by no means as simple as directly exporting products made for the U.S. To navigate and thrive in this blue ocean, it is necessary to adopt a deeply localized strategy.

 

 

1. Compliance certification is a prerequisite.

The Middle Eastern market has unique requirements regarding product safety, certification, and religious standards. Halal certification, SASO (Saudi) standards, ECAS (UAE) standards, and local registration licenses are all necessary "passes" that must be prepared before entry.

For example, the Chinese beauty brand Florasis collaborated with local KOLs in the UAE to launch a Halal-compliant lipstick series, resulting in a 300% increase in sales over three months.

 

 

2. Establish a localized brand image and channels

 

(1) Layout of e-commerce platforms: Seize the young consumer wave

According to statistics, the e-commerce market in the Middle East is expected to exceed USD 82 billion by 2025, growing at an annual rate of 20%. Internet penetration in Saudi Arabia reaches 88.60%, and in the UAE it is even higher at 96.90%. Chinese brands should actively expand on major platforms such as Amazon AE and Noon, build trust, and integrate into the local business ecosystem.

 

 

(2) Marketing Rhythm and Content Localization

Reasonably avoid religious and cultural taboos. During Ramadan, daytime foot traffic decreases while nighttime shopping sees a concentration. Pre-festival promotions, Ramadan gift packages, and night market marketing are worth emphasizing. Content marketing should integrate local culture, fashion trends, and KOL/influencer strategies, and use social platforms like Instagram and TikTok (active in many parts of the Middle East) for differentiated communication.

(3) Regional Hub Layout

Establish distribution, warehousing, logistics centers or exhibition transit centers in key locations such as Dubai, Abu Dhabi, and Riyadh to achieve the radiation effect of 'China -> Middle East -> Africa/Central Asia'.

 

 

3. Product Strategy: Differentiation, Adaptation, Innovation

Differentiated segmentation: In categories such as home goods, gifts, and beauty, develop new products by combining local aesthetics and usage habits. Patterns like geometric designs, understated luxury, and soft tones tend to be more popular.

Emphasizing both high quality and cost-effectiveness: Consumers in many Middle Eastern countries are highly sensitive to quality and value for money. Brands that can find a balance between quality and price will be more competitive.

Modular and scalable design: In regions with high logistics costs and difficult distribution, lightweight packaging, modular design, and easy-to-assemble/disassemble structures offer greater advantages.

 

 

4. Middle East Exhibition in December: The Fastest Way to Approach the Market

HOMELIFE UAE and Saudi Arabia exhibitions will be held from December 17-19 and December 22-24 at the Dubai World Trade Centre and Riyadh Front Expo Centre, respectively! The exhibitions gather five core product categories: home daily necessities, kitchen and dining products, beauty and personal care, outdoor leisure and sports products, and gifts and office supplies.

 

 

In addition, the 'Middle East Trade Matching Conference' will be held, covering nearly 600,000 buyers from the Middle East region. A total of 12 government and business associations, including the Dubai Chamber of Commerce, Dubai Department of Economy and Tourism, Saudi Ministry of Investment, and Riyadh Chamber of Commerce, will organize 17 buyer delegations to attend the exhibition on-site.

 

 

Precisely connect with major retailers, wholesalers, and brands such as Lulu Hypermarket, Home Box, Day to Day, Al Safeer Group, Nesto Group, and Panda Retail to promote accurate matching between parties, deepen supply chain collaboration, and help Chinese companies expand into Dubai, Saudi Arabia, and the Middle Eastern market!

 

Tap into Middle East international business opportunities, scan the code to consult now!

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