Guangzhou has the longest history of foreign trade of any city in China. As the former terminal port of the "Silk Road of the Sea", then a treaty port, and now one of fourteen designated "open cities", Guangzhou has always encouraged foreigners to come to trade. The Chinese Export Commodities Fair (also known as the Canton Trade Fair), held twice yearly since 1956, was until 1978 the only channel for Chinese trade with the outside. Factories from all over China came to exhibit their products to foreign buyers. Since the advent of China's 1978 "open policy", many more fairs and exhibitions have begun in Guangzhou as well as other open cities.

The site of the Chinese Export Commodities Fair.

The 1984 "open cities" policy designated fourteen coastal cities as catalysts for Chinese economic development. Intended to attract foreign investment and generate wealth for the country, they have been given special latitude and privileges. These include flexibility in economic policymaking; the right to create Economic and Technological Development Zones, which provide foreign investors with generous breaks on corporate profit taxes and import/export duties; administrative status at the provincial level, allowing greater autonomy; and the power to offer preferential treatment to overseas investors. Since 1984, 30 different countries and regions have invested in Guangzhou, creating 8295 registered capital foreign enterprises as of 1997. Joint ventures and foreign-owned enterprises jumped from 1.9% to 23% of the total value of industrial goods and services between 1985 and 1991. Most of this investment came from Hong Kong entrepreneurs, who preferred to invest in Guangzhou because of its proximity and common language; also, many Hong Kong investors have relatives in Guangzhou. Guangzhou's designation as an open city has facilitated its economic growth and increased its wealth tremendously.