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Internationalization will become the future develo

Internationalization of the Chinese conference & exhibition enterprises still remains in the inward internationalization stage, the pace of foreign investment is slow, and they can not control the other country markets through capital operation, even the introduction of foreign capital is faced with enormous challenges.

¡¡¡¡The statistics show that since the reform and opening up, China¡¯s conference & exhibition industry has been growing at the average annual rate of 20%. Industrial characteristics of the conference & exhibition industry, have determined that China¡¯s conference & exhibition industry is faced with international competition from the beginning, and internationalization of conference & exhibition enterprises is the only way for China¡¯s conference & exhibition industry to deal with the fierce international competition.
¡¡¡¡Experts in the industry believe that the internationalization of Chinese conference & exhibition enterprises lies in the inward stage (i.e., the primary stage), which is mainly manifested in the following aspects: firstly, foreign exhibition companies speed up their paces to set up branches or offices in China. For example, Reed Exhibitions Company (France) and Frankfurt Company (Germany) set up Shanghai and Beijing Branches under the influence of SARS last year; secondly, the well-known international brand exhibitions have been transplanted to China. At present, many well-known foreign conferences and exhibitions have been transplanted to China, such as Germany CeBITAsia, elec-tronicChina, America ComdexChina and more specialized Nepcon, Semicon; thirdly, foreign conference & exhibition companies establish joint-venture and cooperation conference & exhibition enterprises with domestic companies, and co-host the exhibition in the country. In addition to the Shanghai New International Expo Center as a model of joint venture, there are a lot of other joint ventures and cooperative operations, such as optoelectronic exhibition organized by the Frankfurt and Guangzhou Guangya Exhibition Company by the end of last year. The two companies hosted the exhibition cooperatively, but one was responsible the domestic exhibition, the other was responsible for the foreign exhibition, to achieve rapid integration of the international and domestic exhibitors. By the end of last year, Shanghai UBM Sinoexpo as a subsidiary of the Munich Company established Bojian Exhibition Company with Ailuoniya Company, and held the brand exhibition of building and ceramics in Shanghai this year. Fourthly, the parties concerned have further expanded the domestic conference & exhibition market, allowing Hong Kong and foreign conference & exhibition enterprises to establish wholly-owned companies in Mainland China under certain conditions.

¡¡¡¡This shows that the internationalization of the Chinese conference & exhibition enterprises still remains in the inward internationalization stage, i.e., the introduction of foreign investment, the establishment of a joint venture, collaborated and wholly-owned enterprise to some extent, while their pace of foreign investment is slow and can not control the other country markets through capital operation.

¡¡¡¡It is generally believed that the enterprise internationalization, especially for the enterprise foreign investment, should have certain conditions, such as large-scale enterprise, with strong anti-risk ability, and strong capital strength as well as a higher management level, but at present Chinese conference & exhibition industry does not have these conditions yet, even the introduction of foreign capital are facing enormous challenges, which has seriously hampered the process of internationalization of the Chinese conference & exhibition enterprises. However, the development of the conference & exhibition industry in an open economic environment can not wait to conduct foreign investment until the Chinese conference & exhibition industry becomes stronger, because it will be defeated in the country by the international conference & exhibition companies before the Chinese conference & exhibition enterprises may not yet grow up. Even if the conference & exhibition enterprises in our country can grow and develop successfully, it will also face the embarrassing situation that the international conference & exhibition market has been carved up by the conference & exhibition powers in the world.

¡¡¡¡China¡¯s conference & exhibition industry is a huge potential market for many foreign conference & exhibition companies; with the cancellation of service trade barriers to entry, it enables them to more freely access into the channels of the Chinese conference & exhibition market, and the competition in the domestic conference & exhibition market is becoming more international. In addition, the WTO has also brought advanced management experience and exhibition technology to the domestic conference & exhibition industry. Facing the opportunities and challenges brought about by the accession to the WTO, China¡¯s conference & exhibition industry should be prepared to establish industry regulations, and become familiar with international rules as soon as possible.