China exporters shrug off Iran war as trade engine holds firm

The Canton Fair in Guangzhou (April 15 to May 5) is showcasing a record 32,000 exhibitors across the 1.55 million-square-meter venue
[Coutesy Nikkei]

Chinese exporters gathering at the Canton Fair in Guangzhou are pressing ahead with global expansion despite disruptions caused by the Iran war, underscoring the resilience of the Greater Bay Area’s manufacturing and trade ecosystem.

The 139th Canton Fair – China’s largest trade expo – opened this week with a record 32,000 exhibitors and about 210,000 registered buyers, reinforcing Guangzhou’s role as a key gateway for global commerce in southern China.

According to reporting by Nikkei Asia, many exporters say rising energy costs and shipping delays linked to tensions in the Strait of Hormuz have yet to significantly derail business. Instead, overseas markets remain essential as weak domestic demand continues to weigh on sales.

“Shipments have been delayed for our Middle East customers, but the impact is not that big for now,” Teresa Zhang of Guangzhou-based Blueswift Electric said, noting that exports far exceed domestic sales.

This resilience reflects broader structural strengths in the Greater Bay Area, where integrated supply chains, port infrastructure and export-oriented industries allow companies to absorb external shocks. Years of price competition and shifting U.S. tariff policies have also forced firms to become more adaptable.

Still, pressure is building. Rising raw material costs are pushing manufacturers to increase prices, with companies like Akko Star citing higher costs for plastics and metals. Exporters are now negotiating with buyers to pass on some of those increases.

Despite these headwinds, China’s export machine remains robust. Shipments grew 14.7% year-on-year in the first quarter of 2026, even as growth slowed in March. Analysts say China’s production resilience – supported by energy buffers and scale – could further strengthen its position as the world’s factory.

The Canton Fair also highlights China’s push up the value chain, with new sections dedicated to drones and renewable technologies. International buyers continue to view Chinese suppliers as technologically ahead, particularly in clean energy products.