SHANGHAI: China''s exhibition industry will continue its rapid growth as the sector is further regulated, especially in the area of intellectual property rights (IPR), according to a report released yesterday.

Multinational exhibition companies are teaming up with domestic firms to tap the lucrative Chinese market, where trade fairs are gaining increasing attention from both domestic and overseas companies, the report said.

But overseas exhibition firms were advised to adopt an innovative approach to cooperation and seek new partners if they aimed to take a share of the sector, which has seen an influx of international players.

According to the annual report on China''s exhibition industry compiled by the China Council for the Promotion of International Trade (CCPIT), the country hosted more than 3,800 trade fairs last year, which raised 14 billion yuan from direct sales.

That was a big jump from previous years, thanks to the nation''s strong trade volume and solid economic growth. The number of trade fairs in China was 1,000 in 1997, 2,000 in 2002 and 3,000 in 2004.

Foreign exhibition firms are active in the Chinese market and are organizing more fairs in response to clients'' needs to expand their business in the market.

"China''s fast-growing economy is boosting quick development of the exhibition industry," said Wan Jifei, chairman of the CCPIT, at the opening of the third China Expo Forum for International Cooperation, during which the report was released.

"The number of trade fairs is escalating every year, new exhibition centers are being built, courses are being set up at universities and colleges, and training and research institutions for the industry are emerging," he said.

And stronger commitment from the Chinese government on IPR protection is assisting the healthy development of the sector.

According to a statute enacted last March, an office must be set up by exhibition organizers to handle complaints about IPR infringements if an exhibition lasts more than three days.

Venues must prevent exhibitors from using the shows to sell or organize the processing of illegal products, and organizers and participants engaging in IPR violations will be barred from holding or attending exhibitions again.

Local governments are also taking steps to fight IPR violations in the exhibition industry. In Beijing, for instance, representatives from around 200 exhibition institutions made a joint pledge in May to respect IPR and stamp out infringement at their trade fairs.

"IPR protection was a hot issue for the industry in 2006," the report said.

And domestic exhibitions saw a further influx of multinational players last year.

"Exhibition giants from the US, Germany and Italy continued the trend by setting up subsidiaries, joint ventures and representative offices in China," the report said.

"Yet more multinationals are switching their focus to advancing in the Chinese market by teaming up with domestic enterprises," it said.  -China Daily