Hainan's 'International Consumer Goods Expo' with President Xi Jinping's Participation

China Showcases China Money Through Consumer Goods Expo... Reflects Strategic Judgment Amid US-China Conflict
China, Major Player in Luxury Market, Doubled Luxury Sales Last Year Despite COVID-19

[Asia Economy Beijing=Special Correspondent Jo Young-shin] A new international expo showcasing China’s financial power opened in China.

According to Chinese media including Xinhua News Agency on the 7th, the "1st China International Consumer Goods Expo" opened on the same day. The expo will be held in Hainan, China, until the 10th.

Photo by Global Times Capture

China plans to foster the Hainan Consumer Goods Expo alongside the Shanghai Import Expo, Canton Fair (trade exhibition), and Beijing Service Trade Expo. This expo aligns with the Chinese leadership’s "dual circulation (export and domestic demand activation)" policy.

It also reflects the Chinese leadership’s strategic judgment to once again showcase China’s massive domestic market to the world and enhance its economic status.

Additionally, there is an intention to develop Hainan as a free trade port to replace Hong Kong. China officially announced in June last year that it would develop Hainan into a free trade port by 2050.

President Xi Jinping also sent a congratulatory message expressing interest in the Consumer Goods Expo. President Xi stated, "I hope everyone around the world seizes opportunities at the Consumer Goods Expo and that this expo contributes to the recovery of the global economy. I hope the Hainan Free Trade Port will leverage its advantages as a top-level opening-up pilot zone to deepen bilateral, multilateral, and regional cooperation, so that all countries can jointly create a more beautiful future for humanity."

More than 1,300 global brands, including Louis Vuitton, are participating in this expo, with the exhibition hall covering an area of 80,000 square meters (approximately 24,200 pyeong). Chinese media reported that over 800 Chinese domestic brands will also participate. The organizers expect about 20,000 professional buyers to attend and are optimistic that the total number of visitors will exceed 200,000.

The Global Times reported that despite travel restrictions due to COVID-19, luxury consumption in China significantly increased last year, predicting that China will become a major country for luxury consumption. It added that while global luxury sales declined by 23% year-on-year last year, luxury spending in China more than doubled.

In fact, duty-free sales at Hainan duty-free shops have soared. From January to February this year, sales at Hainan duty-free shops reached 8.3 billion yuan, a 319.7% surge compared to the previous year. Over 700,000 shoppers visited Hainan duty-free shops in January alone.

The Global Times noted that China’s luxury consumption indicates a change in China’s consumption structure and added that despite travel restrictions, global luxury brands are making various attempts to capture the Chinese market.

This content was produced with the assistance of AI translation services.