BERLIN — The IFA – the world’s largest and oldest consumer electronics trade show – is back in full swing from September 5–10 in Berlin. Following a challenging period marked by pandemic-era declines in exhibitors (notably between 2020 and 2024), IFA is finally regaining momentum. Many once-prominent companies either shuttered during the pandemic or abandoned costly international exhibitions. Now, a rebound is under way—yet one shaped by shifting global dynamics.

Historically, Chinese firms accounted for the largest exhibitor bloc at IFA. While their presence is returning, it remains tempered by China’s sluggish domestic economy, particularly affecting startups. A wave of Chinese companies is increasingly targeting –  and depending upon – export markets to sustain growth.

Europe Emerges as Crucial Export Pivot amid Global Policy Headwinds

China’s traditional reliance on the U.S. tech market has been complicated by unpredictable and trade-damaging tariffs introduced under the Trump administration. This trade friction has made Europe a more attractive, and necessary, target for Chinese exporters seeking stability. The IFA, therefore, presents a timely platform for Chinese brands (ranging from well-established manufacturers to emerging startups) to re-establish international partnerships and drive momentum in Europe.

Economic Pressures at Home Shape Overseas Strategy

While China’s export push appears revitalized, its domestic outlook is far from rosy:

• Youth unemployment in urban China remains alarmingly high. In August 2024, the official rate for 16–24-year-olds who are not in school reached 18.8%, marking a troubling record in the newly adopted measurement system.
• Earlier, in June 2023, youth unemployment spiked even higher – hitting 21.3% – before data publication was temporarily suspended in light of widespread public concern.
• While China’s full-year GDP growth rate for 2023 was 5.2%, it narrowly missed analyst expectations and revealed persistent underperformance in key sectors like real estate. Urban unemployment continued to hover around 5.2–5.3%, and domestic consumption growth remained sluggish.

These economic strains – particularly entrenched youth joblessness and limited economic dynamism – are reducing consumer spending power across the country. As a result, Chinese tech and electronics vendors are under pressure to redouble overseas efforts to sustain revenue growth.

IFA 2025: Strategic Importance for Chinese Players

Anticipated Resurgence from China, Japan, and Beyond?

Trade fair organizers expect growing contributions not only from China but also from regional tech hubs like Japan, South Korea, and Taiwan. Exhibitors from these markets are seen as key to demonstrating IFA’s renewed international clout.

Government Support: A Silent Hand Guiding Exhibitors?

While direct government subsidies for booking an exhibition booth at IFA (and other fairs), industry representatives also offer soft support mechanisms – including logistical guidance, export facilitation programs, and incentives from local trade bodies – that may be aiding Chinese participation. The precise role of national and provincial authorities in leveraging the IFA as an export vehicle remains fluid, but appears to be increasing.

Challenges Persist Despite Renewed Momentum

• Startup Vulnerability: Younger Chinese hardware firms – especially those that emerged post-2020 – face cash-flow constraints and often cannot divert resources to expensive trade shows. Only those with sufficient capital reserves are currently able to attend IFA.
• Waning Domestic Demand: With widespread closures and weak consumer traffic in China’s once-bustling mall corridors, the local appetite for new gadgets remains low. The current high youth unemployment rate – estimated by some analysts at 25-30% – has severely eroded buying power.
• Dependence on IFA as a Gateway: For many Chinese players, especially hardware newcomers, IFA isn’t just a showcase – it’s a gateway to European distribution. Missed presence now could mean lost shelf space and partnerships later.

Europe’s Role and IFA’s Game Plan

European policymakers and trade fair planners are acutely aware of IFA’s role as a global tech platform. To maximize its relevance:

• There’s an emphasis on diversity—in addition to secure Chinese participation, organizers are courting Japanese, Korean, and Taiwanese innovators to broaden appeal.
• Infrastructure upgrades (e.g., hybrid exhibition models, virtual attendance options) aim to make IFA accessible even to firms constrained by travel budgets.
• Strategic programming – dedicated tracks for startups, export clinics, and investment panels – aim to shore up networking and practical business outcomes.

More Than Just a Trade Fair Revival

IFA’s resurgence in 2025 embodies broader shifts in the global consumer electronics landscape. The once-Chinese–USA–European axis is fracturing. As domestic Chinese demand wanes and youth unemployment climbs, China’s tech exporters now must rely more on European markets for survival. Simultaneously, IFA’s organizers and European technology buyers stand to benefit – if they adapt quickly and inclusively.

IFA will not only showcase the latest gadgets – it will reflect the pressures and pivot points of a transforming global supply chain and signal whether Europe remains central to a changing technological world order. (hz) – Photo: AT/hz