Economic standing of cities might differentiate cities having leadership (cluster effect 1) from those being sources of exhibitors (cluster effect 2), as cities with a strong economic standing are typically large cities (defined in terms of municipality and economic output), and their pattern of clusters encompass more heterogeneous industry sectors whereas in second or third-tier cities more homogenous pattern of industrial concentration manifest. This is in line with Rubalcaba-Bermejo and Cuadrado-Roura’s (1995) argument that larger cities have a higher level of industry diversification and a greater number of exhibitions. Cluster effect 1 explains the leadership of a few gateway cities in exhibition development. Thus, the three first-tier cities in China’s exhibition industry e Shanghai, Beijing, and Guang zhoue as the leading cities of the three largest industrial belts (the Yangtze River, Beijing-Tianjin and Pearl River Industrial belts), are likely to strengthen their leadership. Gateways cities have a more competitive edge as they may gain support from several clusters in the near region. Cluster effect 2 provides theoretical support for the development of exhibitions in second or third-tier cities where manufacturing facilities/factories cluster.