The 2026 Pearl River International Trade Forum concluded in Guangzhou on October 16, coinciding with the 70th anniversary of the Canton Fair. The event focused on strategies for Chinese companies to expand into overseas markets amid a shifting global trade landscape.

Key themes and expert insights

The forum, themed "Building Mutual Trust and Joining Forces for Shared Success," featured dialogues on integrating trade with investment and fostering cooperation among overseas industrial parks. Pascal Lamy, former Director-General of the World Trade Organization (WTO), addressed participants via video. He described trust as the "invisible infrastructure" of international trade and highlighted the Canton Fair's seven-decade role in connecting China with the world.

Jiang Xiaojuan, professor at the University of Chinese Academy of Social Sciences, presented a new model of "born global" enterprises emerging in the age of AI. Unlike traditional approaches where companies establish domestic dominance before expanding, this model involves developing technologies and services for global markets from inception. Jiang noted that rapid advances in digital technologies and upgraded industrial capabilities are driving this shift. She emphasized the need for companies to think globally, build trusted brands, and meet high international compliance standards.

Corporate perspectives on localization

William Huang, Managing Partner of EY China South, observed that globalization is moving toward diversified business models. Chinese companies are increasingly exporting capabilities, such as R&D and supply chain management, rather than just products. Zhu Lei, Vice President and Chief Marketing Officer of Gree Electric Appliances, shared insights from 31 consecutive years of Canton Fair participation. Gree has pursued deep localization, with local employees accounting for 98% of the workforce at its Brazil factory.

Jiang Cong, Vice President of Xiaomi Group's International Business Department, noted that technology-driven firms face distinct challenges in building trust. Their offerings include platforms and ecosystems, requiring strong technological capabilities and sustained investment in localization. Can Yildirim, Managing Director of Severin, emphasized that "the future of cooperation lies in co-creating value," drawing on over three decades of experience in the Chinese market.

Strategic implications for trade integration

Liang Yutian, Deputy Director of the Institute of International and Regional Studies at Sun Yat-sen University, identified overseas industrial parks as key platforms for integrating trade and investment. Participants noted that despite slowing global economic growth and pressures on multilateralism, openness remains the prevailing trend. The forum served as a platform for dialogue among government, business, and academic communities, aiming to help businesses build mutual trust and identify new opportunities.

What the numbers show

The data highlights a strategic pivot from pure export volume to deep operational integration. Gree's 98% local workforce ratio in Brazil contrasts with traditional foreign trade models, suggesting that successful overseas expansion now relies heavily on human capital integration rather than just product shipment. This aligns with EY's observation that Chinese firms are exporting "capabilities" like R&D and supply chain management, marking a qualitative shift in the nature of Chinese global engagement.

The US Commerce Department has slowed approvals for aircraft-part exports to China, limiting licenses for the state-owned Commercial Aircraft Corp of China (COMAC). This action aims to prevent stockpiling and serves as leverage in broader trade negotiations.

U.S. officials are also weighing tighter export controls on landing gear and other components. A draft proposal includes new licensing requirements for aviation hydraulic fluid supplied by companies including Exxon Mobil (NYSE: XOM). Chinese airlines and COMAC remain heavily dependent on U.S.-made parts for planes built by Boeing (NYSE: BA) and Airbus.

Trade Deal Context

This development follows an agreement between President Donald Trump and Chinese President Xi Jinping to provide more favorable tariff treatment for $30 billion of non-sensitive goods moving in each direction. The deal also established a bilateral dialogue on advanced artificial intelligence technology. However, aviation-part licensing remains an active pressure point in the U.S.-China relationship.

Boeing Order Status

China has requested several years' worth of spare parts for 200 Boeing jets purchased last spring, but the U.S. has not guaranteed those supplies. Boeing CEO Kelly Ortberg downplayed hopes of a big China aircraft order in September. He clarified that Boeing never received the roughly 200-plane order reported earlier this year; Chinese officials had only signaled they intended to go ahead with purchases. Ortberg expects orders to come in gradually, with individual airlines announcing them.

What the Numbers Show

The divergence between the $30 billion tariff relief and the continued restriction on aviation parts highlights a bifurcated trade strategy. While non-sensitive goods see eased barriers, high-value industrial assets like aircraft components remain subject to strict licensing controls. This suggests that strategic technological and industrial dependencies continue to outweigh broad commercial concessions in current U.S.-China negotiations.