You probably already know, that the China International Import Expo (CIIE) is underway in Shanghai. It's billed as the largest trade show in the world, another feather in Shanghai's hat.

Here's something interesting from an expat's perspective. All of the stuff you can get at Epermarket, City Super, that's imported... that's what this trade show is about... stuff that we can buy overseas, that's brought into China. And it's not just consumer goods, we're also talking about:

• Automobile
  
• Intelligent Industry & Information Technology
  
• Medical Equipment & Healthcare Products
  
• Trade in Services
  

This year, there are over 70 countries represented, wanting to showcase and get their products sold. There is so much to write about CIIE, but we don't want to overwhelm it.

In this piece, we're going to cover two things. The first is for folks with an interest in trade and economics, with an interview with Eric Zheng, the President of the American Chamber of Commerce. The next part will be a dive into some of the products being showcased at the American pavilions, interesting for the rest of us who might not be able to go to this massive trade show... a look inside.

The Interview, Eric Zheng, President of the American Chamber of Commerce, Shanghai

First things first. In China, things are done at scales above most places in the world. This even applies to Chambers of Commerce. Shanghai's AmCham chapter is the largest in the world.

What is significant here, is that AmCham is not only participating in CIIE, but they have their own pavilion and have already facilitated massive trades (yes, we'll talk about them).

Let's get into it with Eric first, before we explore the US Pavilions.

Eric, CIIE 2023 was the first year the expo was opened after China had fully re-opened after the pandemic. I'm curious to know how things are going. What are things like this year, compared to 2023?

US companies have always been active in CIIE since it started 7 years ago. But I'd say last year there was a fundamental shift on the American side in terms of presence here. Last year, I pushed this as a project, and AmCham successfully negotiated with the US Department of Agriculture (USDA) to join CIIE. The efforts were successful, and we formed a public-private partnership to co-host a pavilion. This was significant because 2023 became the first year the US was involved at the Federal Government level.

Last year, we had done a total of US$505 million in trade value throughout the expo, so, that's about US$100m a day. It proved to be significant, especially for AmCham members who participated.

This year, we've already closed US$600m in trade value.

Wait. US$600m? Yesterday was the first day of CIIE...

Yes, you're right, US$600m in the first day. We're now up to US$800m in deals signed, and at this rate, we see it as a possibility of surpassing US$1bn. This is a significant expansion of trade deals between the two countries happening at CIIE year to year. So with last year's success, we adopted the same model of partnering with the US Department of Agriculture and expanded the exhibition space compared to last year. It's only the second year we've done this, and it's proved very successful.

There are a number of trade shows centering around specific industries. For people not too aware of these types of events, what is special about CIIE?

I think there are three unique advantages to describe CIIE.

First, it's one of the very few, if not the only expo in the world that focuses on imports.

Second, it really gets a lot of support from the government. And I'm talking about the central government, as well as provincial and local governments. They actively bring buying delegations to visit exhibitors. It's very different from a traditional trade show because here the government plays a major facilitating and active role.

And third, it's very cost-effective for companies. You don't have to go out and try and build relationships, or prospects for buyers. You set up your booth, and buyers come to you during the five-day period. And so just this year alone, we're very encouraged by the results.

You mentioned that the US presence has increased over the years. Could you expand on that?

As I mentioned, this is the second year that the US has participated in CIIE at the federal level. This year, we have also expanded to include 14 state delegations and over 30 US companies.

We are already considering further expansion of our presence for next year. In another part of the expo, the state of Maryland partnered with the Bay Area Council to showcase technology-focused exhibitions. They have a smaller pavilion with a few companies, which is typical when smaller groups participate.

Ideally, we would like to have a large American pavilion that highlights products from various industries. Next year, we hope to explore creative ways to expand beyond food and agriculture. Smaller companies and individual states often have limited resources, but we are interested in exploring the idea of pooling resources to achieve something more substantial. While national pavilions generally focus less on specific products and more on presenting a country's image and culture, we are aiming for a more product- and commerce-oriented approach.

A Look Inside of the American Pavilions at CIIE:

The American Food Agriculture Pavilion area. In 2023, the US exported more than 28 billion dollars in trade value to China for Agriculture exports alone. This year, there were 14 state exhibitors (including California, Idaho, Washington, and others), and 31 participating companies offering a variety of products (which we'll take a look at below). Beef, wine, soybeans, wheat, sorghum, potatoes, cotton, rice, dry beans, ginseng, dairy feed, and pet food are just some examples.

Let's have a look inside...

Oh but first, some ribbon cutting.

Corn is a big export to China. Last year this was a US$1.63 billion segment in export value coming to more than 5 million metric tons. That little piggy carries with it some meaning. While most of us associate corn with something to enjoy a meal with, most corn imported into China from the US is used for animal feed.

China has one of the world's largest livestock sectors; specifically, a substantial amount of these corn imports is used for pork production.

Beef and pork products are also a large segment, with around US$1.61 billion in export value, coming in at under 200,000 metric tons. For a while, US beef wasn't available in China, but that trade barrier lifted in 2016, with the first shipments coming back into China the following year. Year by year, the trade volume for beef has scaled (which is why, folks who have lived in Shanghai for a while, have started to see cuts of US beef alongside Aussie beef in some of Shanghai's steakhouses).

Since 2017, the scale of the beef trade specifically has grown monumentally.

• 2017: US$31m
  
• 2018: US$60m
• 2019: US$24m (trade war, and increased competition from other beef suppliers like Australia and Argentina)
• 2020: US$754m
• 2021: US$1.5bn
• 2022: US$2.5bn (China re-opened, growing demand from consumers, and decreased competition from Australia
• 2023: US$1.6bn

US cotton is another big export to China. Guess how much the US exports here. Wrong! It's about US$1.55 billion, totaling 775,619 metric tons!

In addition to national pavilions, states also set up their own exhibition pavilions. Here, we see the Washington State Department of Agriculture showcasing some of their products. Frozen fruit, to be exact.

In 2023, Washington State exported approximately US$11 billion in goods to China, accounting for 18 percent of the state's total exports. This makes China, Washington state's largest trading partner. Cool, huh?

Washington-grown or processed food exports to China came out to over US$857m. Frozen berries didn't make the top ten... but maybe this year?

Alcohol exports to China totaled around US$100m in 2023, making China the 8th largest market for US spirits exports. Guess who was number one? The EU of course!

Oohhh. California wines. This California native is always pleased to see his home state represented. For the wino's reading this, California sports some excellent wines from Napa Valley for premium Cabernet Sauvignons, and the super gorgeous Sonoma County. There are a few other producing area's, like Lodi, known as the "Zinfandel Capital" of the world.

Ginseng, traditionally associated with an Asian remedy, actually has a specific cultivar produced in the US. Panax Ginseng, otherwise known as American Ginseng is produced in Wisconsin and the Appalachian Region. China, of course, is the largest importer of American Ginseng.

Just two days into the CIIE, the excitement and impact are already tangible. With US$600 million in trade deals secured on the opening day alone – surpassing last year's total of US$500 million over five days – this points to very positive trade trends between the US and China.

Shanghai is on a roll this year. The city continues to prove why it stands as a global hub for economic leadership and cross-border collaboration, with this year's expo showcasing the immense potential of international partnerships.

Thank you Eric for having a chat with us, and to AmCham Shanghai for inviting us to visit them during their opening ceremony!