Walmart's Presence At China's Biggest Trade Show Raises Supply Chain Decoupling Doubts

The 137th Canton Fair, China's largest trade show, opened in Guangzhou, attracting 200,000 overseas buyers, including major US retailers like Walmart. Despite trade tensions with the US, the fair showcased 31,000 exhibitors and a wide range of products. Exhibitors highlighted China's comprehensive supply chain and competitive pricing. A US supplier emphasized the continued reliance on Chinese products due to their price-performance ratio. Even with sourcing from other countries, many goods still originate in China, impacting costs for US importers and consumers. A German buyer confirmed the difficulty in replacing Chinese goods, citing the trade war's impact on global markets. The favorable price-performance ratio of Chinese products is the main reason for continued reliance. Restructuring global supply chains is a lengthy process, meaning continued dependence on China for certain goods. Walmart's presence underscores the unlikelihood of complete decoupling between the US and China. The US is focusing on reshoring critical supply chains while China maintains dominance in soft-line manufacturing.