The global business landscape is witnessing a significant shift as Chinese enterprises increasingly turn their attention to emerging markets in the Middle East and Latin America. While challenges in European and American markets play a role, the phenomenon reveals deeper strategic opportunities for Chinese brands going global.
Data Reveals: The Current State and Trends of Chinese Companies Going Global
According to China's Ministry of Commerce, by the end of 2025, more than 50,000 Chinese enterprises had established operations overseas, spanning 190 countries and regions. China's outward direct investment stock has ranked among the top three globally for nine consecutive years, reaching $174.38 billion in 2025, a 7.1% year-on-year increase.
The China Council for the Promotion of International Trade's "2025 China Exhibition Economic Development Report" shows that 1,652 overseas exhibition projects were approved in 2025, with 1,259 actually executed, representing increases of 6.58% and 7.98% respectively compared to the previous year. While these numbers haven't yet returned to 2019 peak levels, they demonstrate a clear recovery from 2023-2024 figures, indicating growing enthusiasm among Chinese companies for international expansion.
Structural Shifts: The Rise of Emerging Markets
More interestingly, the preferred destinations for these ventures have changed. Traditional hotspots like Germany, the United States, and Russia have seen declining participation in overseas exhibitions, with Chinese company participation rates dropping from 59% to 43% for Germany and from 37% to 26% for the U.S.
Meanwhile, Middle Eastern and Latin American markets are experiencing rapid growth. UFI's "Global Exhibition Barometer" reveals that 80% of surveyed businesses in Saudi Arabia expect exhibition-related revenue growth exceeding 5% in 2025, with plans to expand their workforce accordingly.
Dual Drivers: Opportunities in Emerging Markets vs. Challenges in Western Markets
This shift stems from two primary factors:
- Emerging Market Demand: Saudi Arabia's "Vision 2030" initiative, which prioritizes infrastructure, culture, tourism, and sports development, along with preparations for major international events like the 2034 World Cup and World Expo, has created substantial demand for construction materials, furniture, appliances, and industrial equipment.
- Western Market Uncertainties: The U.S. implemented over 300 new trade restrictions in 2025, while the European Union continues to strengthen its Carbon Border Adjustment Mechanism (CBAM), compelling companies to diversify market risks and seek new growth opportunities.
Trade Shows: The Most Efficient Gateway to Emerging Markets
For companies targeting emerging markets, trade exhibitions remain the most effective entry point. These events allow international buyers to evaluate product quality firsthand and negotiate deals face-to-face, which is crucial for building trust and closing transactions.
Milan Expo, with its extensive experience in this field, organized the first Saudi China Commodity Fair in Riyadh back in 2003. However, market conditions at the time proved challenging due to Saudi Arabia's relatively closed economy and strict visa policies, leading to the event's suspension after 2005.
The landscape has transformed dramatically since then. Under the Crown Prince's leadership, Saudi society has become more open, with massive infrastructure investments fundamentally improving the business environment. Today, over 160 large Chinese enterprises operate in Saudi Arabia across various sectors including railways, ports, power stations, and telecommunications.
Global exhibition giants like Intermann, Messe Düsseldorf, and Hannover Fairs have also established operations in Saudi Arabia. In 2025, Milan Expo returned to Riyadh after 20 years, organizing a China Export Brand Joint Exhibition featuring more than 1,000 companies across four halls of the Front Expo Center. The three-day event attracted nearly 25,000 professional buyers from the Middle East, facilitated over 25,000 business matchings, and achieved a digital matching rate exceeding 78%.
Focusing on "Non-US Markets": Milan Expo's Strategic Approach
This initiative represents a key component of Milan Expo's "Non-US Market" strategy. Their 2025 interim report identified the Belt and Road Initiative, RCEP, and BRICS nations as priority markets, implementing "Flash Trade" programs to help companies reduce reliance on the U.S. market while efficiently expanding into emerging economies.
To address Saudi market characteristics, Milan Expo partnered with supply chain leader Fanting to establish Fanmi Supply Chain Company, creating localized supply systems for exhibitors. This is particularly important given Saudi Arabia's market composition: 30% large-volume importers and 70% local distributors requiring smaller, more frequent shipments.
From Products to Brands: The Evolution of Chinese Companies
Trade shows are helping Chinese companies transition from OEM/ODM manufacturers to brand owners. Many enterprises that previously produced goods for foreign brands now seek to establish their own identities and connect directly with consumers.
Industry experts suggest the current period represents a golden opportunity for Chinese brands to establish themselves overseas. Emerging markets offer relatively lower competition and costs, while global recognition of Chinese manufacturing quality remains high, particularly in countries like Saudi Arabia that value China's industrial capabilities.
Hangcha Group's participation in the Saudi joint exhibition exemplifies this trend. Displaying forklifts and aerial work platforms, the company received 300-400 daily visitors, generating strong order intentions while significantly enhancing brand awareness. The company plans to follow Milan Expo to Indonesia and South Africa for future exhibitions.
Selecting the Right Exhibition: Three Key Criteria
While trade shows offer powerful tools for international expansion, choosing the wrong event can prove counterproductive. Based on nearly three decades of overseas exhibition experience, industry leaders recommend three essential selection criteria:
- City Selection: Focus on regional hubs with strong influence, high client concentration, and optimal efficiency. Riyadh's status as Saudi Arabia's capital and commercial center makes it a natural choice, attracting buyers from Saudi Arabia and neighboring countries like Kuwait, Jordan, and Nigeria.
- Venue Selection: Prioritize quality and concentration effects. Among Riyadh's three major venues, the centrally located Front Expo Center has become the preferred location for top global exhibition companies, offering over 30,000 square meters of space.
- Exhibition Company Selection: Align with business objectives. Different organizers specialize in various areas—some emphasize industry networking with audiences that may not be buyers, while others like Milan Expo focus specifically on serving Chinese companies, offering comprehensive pre-show, on-site, and post-show support systems proven to enhance transaction efficiency.
Selecting exhibitions ultimately means choosing market opportunities. The investment must yield actual orders and channels rather than consuming valuable time and opportunity costs. For companies seeking to capitalize on emerging market potential and build their brands, these recommendations provide valuable guidance.
The success of Foshan Dilo Furniture illustrates these principles in action. At the Riyadh exhibition, the company displayed sofas and dining tables featuring gold-trimmed fabric and leather edges that perfectly matched local aesthetic preferences, attracting numerous potential clients. Company representatives reported meeting with over 100 customers in just a few days, demonstrating how Chinese companies can thrive in emerging markets with the right approach.
In conclusion, current conditions present an ideal window for Chinese companies to establish international brands. By seizing these opportunities and implementing appropriate strategies, an increasing number of Chinese brands can achieve global success and capture greater market share.