China’s IT suppliers are clearly more optimistic than electronics manufacturers attending this spring’s trade fairs in Hong Kong.
Thousands of companies writing software code or shipping electronics parts to customers around the world gathered in Hong Kong, trying to attract buyers at trade fairs.
For many electronics manufacturers, the mood was glum. But information technology providers were more upbeat, finding customers looking to China to help cut costs during the global economic downturn.
As in other trade fairs all over the world, there were fewer buyers to go around this time, and many companies from mainland China needed financial assistance to attend the four-day fairs, which ended Thursday at the Hong Kong Convention and Exhibition Center. Delegations from regional governments in mainland China were out in force, working harder than ever to convince potential buyers that their second- or third-tier Chinese city was a worthy — and cheaper — outsourcing destination.
‘Many of the international electronics shows that have been held earlier all experienced a decline in the number of buyers. Hong Kong won’t be an exception,’ said Raymond Yip, assistant executive director of the Hong Kong Trade Development Council, which organized the electronics industry and information technology trade fairs. But ‘with the continuously growing China market, our declines will be moderate.’
Forbes reported China grew at its slowest pace in the first quarter on record, but analysts think that the worst may be past. Yip said that Western inventories have been nearly depleted, and suppliers will need to restock, furthering along a stabilization of orders for manufacturers and exporters.
There were 8,500 organized buying groups that attended the Electronics Fair, and 3,200 were from mainland China.
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