On December 18-19, 2024, the "2024 GoGlobal Forum of 100 • Shanghai" (GGF2024 Shanghai), hosted by EqualOcean, a leading think tank for globalization, successfully concluded in Xuhui District, Shanghai. The two-day event featured four full-day forums: the Leadership Forum, the Brand Globalization Forum, the Overseas Insights Forum, and the Emerging Industries Globalization Forum. With 107 speakers, 100 award-winning institutions, and over 3,000 attendees, the forum aimed to advance globalization, drive "true" global expansion, and create a new chapter for Chinese companies going global in 2025.
On December 19, during the Overseas Insights Forum, Professor Yan Cui, Secretary-General of the Zhejiang International Chamber of Commerce for the Private Economy and former Associate Professor at Zhejiang University International Business School, delivered a keynote speech titled "Trends and Insights in Globalization." Professor Yan provided an in-depth analysis of how global market dynamics and industry trends impact and challenge companies expanding overseas. Below are the highlights of his remarks.
On December 19, during the Overseas Insights Forum at the GGF2024 Shanghai event, Yan Cui delivered a keynote speech titled "Trends and Insights in Globalization." He provided a comprehensive analysis of how global market dynamics and industry trends impact and challenge Chinese companies expanding overseas. Below is a summary of his remarks.
Overview of China's Economic and Trade Cooperation: The Rise of Private Enterprises and Structural Changes
Yan highlighted the remarkable achievements of Chinese private enterprises in exports since China's accession to the WTO. From 69 billion in 2004, private enterprise exports surged to 69 billion in 2004, private enterprise exports surged to 2.099 trillion in 2022, accounting for 58.9% of China's total exports. Imports by private enterprises also showed strong performance, contributing around 37% in 2022. Despite their significant role in imports and exports, state-owned enterprises, particularly central enterprises, still dominate the field of overseas contracting.
Regarding exports and investments to Belt and Road Initiative (BRI) countries, Yan emphasized the importance of the ten ASEAN nations, with Vietnam being China's largest export destination within ASEAN. Since 2016, China's exports to ASEAN have grown significantly, with BRI countries accounting for a substantial share. In terms of outward investment, flows and stock to ASEAN countries have increased in recent years, while investments in North America and Europe have largely stagnated since Trump's first term.
Zhejiang's Economy and the Wave of Zhejiang Merchants Going Global: Vigorous Momentum and Structural Evolution
Despite its small geographical size, Zhejiang Province boasts strong economic capabilities, ranking fourth in GDP and second in export volume nationwide. Its private economy is highly developed, with the largest number of listed private enterprises and leading the list of China's Top 500 Private Enterprises for 25 consecutive years. Zhejiang merchants, guided by the "Four Thousand Spirits," have ventured globally, with over 3 million overseas Zhejiang merchants.
Yan noted that the proportion of private enterprises in Zhejiang's total exports has surged from 36.5% two decades ago to 81.5% today. In terms of market distribution, the share of BRI and ASEAN markets has risen, though the U.S. remains the largest single market. The product structure has also shifted, with traditional sectors like luggage and footwear declining, while industries such as auto parts have grown. As a major textile province, Zhejiang's clothing exports have decreased significantly, but yarn and fabric exports remain high, reflecting challenges in the supply chain for Zhejiang merchants' overseas investments.
In terms of strategic layout, Yan pointed out that the proportion of investments in BRI countries has increased in Zhejiang's private enterprise overseas investment filings. Motivations for overseas investment are diverse, including responding to anti-dumping investigations, leveraging local tax incentives and cheap labor, following overseas supporting investments by European and American companies, developing independent brands, acquiring high-end technologies and markets through overseas mergers, establishing R&D centers, small and medium enterprises going global collectively through overseas industrial parks, industrial clusters going global, and participating in the restructuring of friendly and nearshore distributed supply chains to avoid U.S.-China decoupling.
Challenges for Zhejiang Merchants Going Global: Analysis and Strategies
Yan Cui, Secretary-General of the Zhejiang International Chamber of Commerce for the Private Economy, analyzed the numerous challenges faced by Zhejiang merchants expanding overseas. He highlighted both international and domestic factors that complicate their globalization efforts.
International Challenges:
Yan pointed out that the U.S.-China relationship, while superficially a trade dispute, is essentially a clash of systems, creating significant uncertainty for Zhejiang merchants. The ambiguity of U.S. trade policies, such as the uncertain targets and regions for high tariffs, makes overseas investment decisions particularly challenging.
Domestic Challenges:
Domestically, economic involution is severe, with some local governments expressing reluctance to support enterprises going global. Concerns about industrial hollowing out, job losses, and reduced tax revenue have led to a lack of enthusiasm for overseas investments. Additionally, supply chain shortcomings remain a critical issue. For example, in Vietnam, despite significant Chinese investments, the reliance on Chinese exports for raw materials and components persists due to incomplete local supply chains. Small and medium enterprises face even greater difficulties, as overseas ventures involve significant personal stakes. Meanwhile, European and American companies' demands for overseas backup factories force these enterprises to make tough decisions.
Strategies for Overcoming Challenges:
To address these challenges, Yan recommended that enterprises consider multiple collaboration channels when investing abroad. Beyond seeking support from fellow locals and the government, they should seek professional assistance from law firms, accounting firms, and banks. For overseas investment risk management, the ten principles of Huali Group and the National Financial Regulatory Administration's "Risk Management Methods for Banking Financial Institutions" provide valuable guidance. These resources can help Zhejiang merchants and Chinese enterprises seize opportunities and navigate challenges in the wave of globalization, achieving steady and sustainable development.
About the GoGlobal Committee of 100 (GGC100)
Since its inception in 2018 as a spin-off from EqualOcean, the GoGlobal Committee of 100 (GGC100) was officially launched at the "2023 Globalization Summit" (ESG2023) in Shenzhen in June 2023. The committee, initiated by EqualOcean and over 100 renowned entrepreneurs, investors, and scholars, aims to serve Chinese companies' globalization efforts. From "gathering 100" to "reaching 1,000," from "industry dialogue" to "global empowerment," the GGC has gathered over 500 elite members worldwide, hosted 1,600+ corporate executives sharing insights, and built a 20,000+ precision-targeted globalization community, covering industries such as new energy, AI, FMCG, and food and beverage, with a total market value of 10 trillion RMB. The committee has organized 8 large-scale conferences with thousands of attendees, 20+ industry salons, 10+ elite gatherings, and multiple study tours.
About the GoGlobal Forum of 100 (GGF)
The GoGlobal Forum of 100 (GGF), hosted by EqualOcean and the GoGlobal Committee of 100, is held annually in June in Shenzhen and in December in Shanghai. Each conference lasts 2-3 days, with over 2,500 attendees, 70% of whom are director-level or above. It is the largest and most prestigious gathering in the field of globalization, attracting significant industry attention. For collaboration opportunities, please contact EqualOcean's team.
About EqualOcean
EqualOcean is a new think tank and core resource connector focused on serving Chinese companies going global and helping overseas companies or institutions seize China's development opportunities. With the mission of "connecting China and the world," our core strength lies in having the strongest team in the industry, bridging official and private sectors, integrating technology and traditional industries, and possessing a global perspective and resource network. Founded in November 2018, EqualOcean currently offers products such as the New Globalization Research Institute, New Globalization Academy, GoGlobal Committee of 100, media events, and the Huang Yuanpu Channel. We provide in-depth Chinese and English reporting and analysis, globalization strategy consulting, overseas market research, benchmark study tours, overseas study tours, globalization conferences, and closed-door meetings. In 2024, the EqualOcean team also published the book The New Wave of Globalization, which sold 100,000 copies.
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