The global financial crisis is still underway, but the world isn't left in peace. Indeed, another crisis has just arisen, and this time its consequences could be much more serious. We are of course talking about H1N1, the swine flu outbreak. Some companies are worried that business, which is already hit hard by the downturn, will suffer even more. Shen Maoguang works for Xinwancheng shoe company in Guangdong, and he is quite pesimistic:

"it affects business. Some clients will worry that the pandemic will spread and affect their sales and therefore dare not buy too bigger quantities."

Other companies on the contrary believe this flu to be temporary and that the situation won't get too bad. Xia Xiwen from another shoe company in Wenzhou this time said:

"it may affect some customers, especially those from north and south America. But overall it should be fine."

This 3rd phase of the fair is showcasing textiles and garments, footwear, office equipment, bags, food, pharmaceuticals and other medical products. Whilst swine flu has had a rather negative effect for most sellers, it has come at the right time those exporting medical products, especially mask manufacturers. Sales of surgical masks skyrocketed with some orders even being placed for delivery after June. A representative from a Ningbo company told us that they had sold out all their masks following large orders from international buyers, mainly in the United States and Mexico.

"They sold so well, far beyond our expectations. Since the news of swine flu was spread on the Internet, all our products were sold out on the 2nd day."

 Unfortunately, swine flu isn't just another of those Internet speculations, but is a real menace threatening the world. The huge market demand is legitimate and is pushing prices up dramatically. A medical product exporter from Hubei province said they have raised their quotations by half, but orders still exceed their production capacity.
"Of course we have raise our prices. We are now offering very high quotations. But even with high prices, we may not be able to get the products made in time because all surgical mask factories are fully booked with orders."

Concerning the price increase, an American buyer commented:

"it may go down later. When these things happen, price always fluctuate. Of course, there is a huge demand out there."

Once again, but in a cynical manner today, it proves that there are always opportunities amidst a crisis. You were listening to today's "hello Canton Fair-dealing with the crisis". Please tune-in tomorrow for more news updates.