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

China’s largest trade show kicked off on Tuesday in Guangzhou, located in South China’s Guangdong Province. According to state-run media, the event features 31,000 exhibitors and so far attracted 200,000 overseas buyers—including mega US retailer Walmart—despite ongoing trade tensions with the U.S. 

Amid global trade frictions, the 137th Canton Fair has opened in Guangzhou with a mood of resilience. Businesses worldwide are showcasing cutting-edge innovations, adapting to shifting market dynamics. CGTN’s Li Shuang explores how exhibitors find opportunities. #CantonFair2025 pic.twitter.com/LBKL5M85Hu

— China Takeaway (@China24Official) April 15, 2025

Global Times said 255 top global retailers, including Walmart, Carrefour, Tesco, and Metro, are attending the 137th China Import and Export Fair (Canton Fair) to search for the latest and greatest products.

The 137th Canton Fair unveiled its Service Robots Zone in Area D to meet buyers’ expectation. At Booth 21.2B61-64, Hangzhou Yushu Technology Co., Ltd. showcased its humanoid robot, the G1. pic.twitter.com/543TrKD47Z

— Canton Fair (@cantonfair) April 15, 2025

One US supplier told the state-run media outlet that American buyers remain dependent on Chinese products. 

“Even when sourcing from other countries, the goods are often still manufactured in China. Whether the tariff is included or the goods are imported from elsewhere, American importers and consumers will ultimately bear the costs.

“In appliances like air conditioners, Chinese products’ price-to-performance ratio has no global rival. While imports may be paused for a month to monitor tariff policies, we’ll return to Chinese manufacturers.” 

Global Times cited other global suppliers that boasted about China “possessing the world’s most comprehensive supply chain” to build low-cost electronics, home goods, and all other items. 

Another buyer—this time from Germany—told the media outlet that “Chinese goods are hard to replace,” adding that the trade war has unleashed uncertainty across global markets. 

Global Times made it clear:

The main reason for global buyers to stick to Chinese products is the favorable price-to-performance ratio.

One key challenge in restructuring global supply chains—whether through friend-shoring or reshoring—is that such transitions take time. In the interim, top suppliers will continue relying on China (or other Southeast Asian countries) for specific goods.

Walmart’s attendance at China’s largest trade show highlights just how unlikely a complete decoupling between the world’s two largest economies truly is. Instead, the U.S. is expected to prioritize reshoring critical supply chains—such as semiconductors, rare earths, drones, and robotics—that are essential to national defense.

Meanwhile, China can continue dominating soft-line manufacturing, such as footwear and luxury handbags. If America intends to dominate the 2030s, it must focus on expanding the capacity of advanced production lines at home, including ones for drones, robotics, and chips.