For the first time in its half-century history, the Canton Fair, known as China's largest export event, welcomed a group of domestic buyers on Saturday, as the organizers hoped domestic deals could offset a fall in export demand.

Representatives of 200 domestic retailers including Wal-mart China and China's Brilliance Group attended the second phase of the 105th fair, which featured consumer goods, gifts and home decorations. The second phase runs from April 24-28.

"The fair organized these domestic trade companies to make purchases here, in order to support Chinese exporters to stabilize production and employment," said Jiang Zengwei, vice minister of commerce, at the fair held in this capital of south China's Guangdong Province.

He said the move also opened a new purchase channel for domestic retailers.

A purchasing agent of Guoguang Supermarket said many China-made products for export have met strict quality requirements in America and European markets. They have been already recognized as high-quality products in the domestic market.

A welcoming board for domestic buyers was set at the exhibiting booth of Shandong Sinoglass Group.

"Many of Chinese exporters used to be satisfied with booming foreign trade, and were reluctant to stoop to do domestic business," said Shang Jinsong, chairman of the board of the group.

He said that the company doing kitchenware business had never been worried about foreign orders until this round of the financial crisis hit.

However, there are some exporters feeling a bit "at loss" to cope with the crowd of domestic customers.

"Our products were designed to cater to European customers. We have not made market surveys to pitch in domestic trade," said Ye Chang'e, manager of decoration and ornaments exporter.

Export deals were down by almost 21 percent year on year at the April 15-19 first phase of the fair, which featured electronics, hardware and tools, machinery, vehicles and parts, building materials and chemical products.

Mu Xinhai, a fair spokesman, attributed the sharp fall to "shrinking external demand, especially from developed countries."

(Xinhua News Agency April 26, 2009)