China
As momentum returns in China , big cities are faring best
EW canvasses some expert insights into how quickly and where the Chinese exhibition market is returning
A t the beginning of 2023 EW invited industry guru Paul Woodward to look into his crystal ball and write what he thought about China ’ s rebound . He predicted then that it would be one of the big stories of the year and , as he notes now : “ Well , it has been … sort of . There has been a great deal of discussion about how China ’ s economic recovery from the dramatic impact of Covid lockdowns in 2022 has been , at least by China standards , anaemic . Increased political tensions between China , the US and , to a lesser degree , Europe haven ’ t helped either .
“ Toward the end of this year , there are signs that growth is picking up toward 5 %, but for most of the year it has been significantly lower . Lower demand for China ’ s exports , some relocation of manufacturing to other countries and , most importantly , weak domestic consumer confidence have all meant that China has not been the growth engine of the world economy we have come to expect over the past 30 years .
“ That all being said , activity in the exhibitions business has rebounded well . It was notable in Informa ’ s recent market update that China was among the regions listed as trading with revenues above 2019 levels . International participation has been lower at many events , particularly from the US where a lack of flights and strong anti-China sentiment have had a significant negative influence . But China , rather like the US , is now primarily a domestic exhibitions market where international participation at most events is more ‘ cream on the cake ’ than the cake itself .
“ A warming of US-China relations in recent months , particularly since the Xi-Biden meeting in California , can be seen by the optimists as a
“ China , rather like the US , is now primarily a domestic exhibitions market where international participation at most events is more ‘ cream on the cake ’ than the cake itself .”
Left : Rented space in Shanghai in nine months of 2023 has matched 90 % of its 2019 levels positive sign for the future or , by the pessimists , as an indication of China ’ s economic weakness . But of one thing we can be sure : the world ’ s second largest economy is not going away , nor are one-fifth of the world ’ s population , and China will remain firmly in most companies ’ sights as a key location for business .”
Jochen Witt , CEO and president of industry consultancy jwc , is another with immense experience of the Chinese exhibition market . He also shares some thoughts on the topic : “ In 2023 , despite facing economic challenges , such as a declining realestate sector , reduced exports , and high youth unemployment , China ’ s exhibition industry has shown high resilience and is projected to reach 85 % -90 % of its 2019 levels ,” he says , and his analsyis concurs with Paul Woodwards in further noting : “ In China ’ s major cities , the industry has regained momentum : Shenzhen World ’ s net rented space is set to more than double compared to 2019 , Guangzhou is bouncing back to precrisis levels , and Shanghai ’ s rented space in the first three quarters of 2023 has nearly matched 90 % of its 2019 levels . On the other hand , the second tier and third tier cities in China are estimated to recover to 70 % -80 % of the pre-crisis level .”
Witt notes also that record numbers of exhibitors and attendees have been seen at many of China ’ s key exhibitions . “ Industry experts , however ,” he says , “ are cautiously monitoring if this robust growth can be sustained in the coming years , especially considering potential economic slowdowns and reduced company budgets for show participation .
“ China ’ s exhibition sector expansion is further highlighted by the expected launch of eight large new venues , each exceeding 120,000sqm , within this year . Additionally , with 22 venues under construction , China is set to offer
48 Issue 6 2023 www . exhibitionworld . co . uk