German trade fair company optimistic about China’s business prospects

Messe Frankfurt GmbH, one of the world’s largest trade fair and event organizers by sales revenue, plans to hold more than 50 commercial exhibitions in China by 2025, a top executive said, adding that the company wants to keep pace with rapidly changing trends in emerging sectors in the country.

The German group has held 41 exhibitions in China in 2023 and plans to hold 45 this year. Next year, it will add business exhibitions on security and the country’s low-level economy.

Stephan Buurma, Member of the Management Board of Messe Frankfurt, emphasised that trade fair activities reflect market trends and stated that China is currently a leader in many sectors, distinguishing itself not only with its economic development but also with technological progress.

Take the automotive sector, for example. A decade ago, China wasn’t particularly dominant in car production. But the country has become a major player in the industry today, especially in electric vehicles, said Buurma, who is also managing director of Messe Frankfurt Asia Holding Ltd.

“This clearly indicates China’s progress in the value chain and we are seeing growing demand for trade fairs in this area,” he added.

In response to market demand and the development of Chinese industry, a total of 260 exhibitions were held in Shanghai in the first half of the year, covering a total area of ​​9.46 million square meters, the Shanghai Municipal Commerce Commission said, representing an increase of 53.85% and 24.62%, respectively, compared with the previous year, with the scale of exhibitions slightly exceeding that of the same period before the COVID-19 pandemic in 2019.

Chengdu, the capital of southwest China’s Sichuan province, hosted 587 major exhibitions and events from January to June, generating total revenue of 77.46 billion yuan ($10.87 billion), up 5.9 percent year-on-year, the city’s exhibition bureau said.

The Frankfurt-based group held Intertextile Shanghai Apparel Fabrics: Autumn edition 2024 at the National Exhibition and Convention Center (Shanghai) in late August, which was attended by nearly 4,000 exhibitors from 27 countries and regions.

Buurma said the pricey fair has proven to be a thriving business hub, with attendees expressing renewed optimism about the prospects for the Chinese market. It represents a meeting point where business and innovation meet.

Messe Frankfurt employs 2,500 people in more than 30 locations worldwide, and its services include exhibition space rental, stand construction, marketing, human resources and catering services.

Even though global foreign direct investment is expected to decline in 2023 due to factors such as slow economic growth and geopolitical tensions, Buurma said his company is not withdrawing its resources from China. On the contrary, the group has a strong pipeline in the country and remains fully committed to investing in the market.

“We are also considering bringing Chinese exhibitors to other ASEAN (Association of Southeast Asian Nations) countries as we believe that intra-Asia trade will become increasingly dominant and significant in the future. Intra-Asia trade is a key area of ​​focus for us and we are closely monitoring its development,” he said.

That sentiment is consistent with the latest data. ASEAN remained China’s largest trading partner, with bilateral trade value reaching 3.92 trillion yuan from January to July, up 10.5 percent from a year ago and accounting for 15.8 percent of the country’s total foreign trade, the General Administration of Customs said.

For industries and supply chains, professional fairs not only provide a bridge between supply and demand for companies, but also provide a convenient platform for industrial chain integration and cooperation at all stages of the supply chain, said Lin Meng, director of the Institute of Modern Supply Chain Research at the China Academy of Foreign Trade and Economic Cooperation in Beijing.