Under the macro framework of global economic integration, the international expansion of Chinese companies has become an unstoppable trend. As China’s outbound direct investment continues to rise steadily, numerous companies are focusing their attention on overseas markets. According to statistics from the Ministry of Commerce and the State Administration of Foreign Exchange, from January to June 2024, China’s outbound direct investment across all industries reached RMB 606.07 billion, marking a year-on-year growth of 16.1%. Among this, Chinese domestic investors made non-financial direct investments in 5,532 overseas enterprises across 152 countries and regions, with a total investment of RMB 515.97 billion, representing an increase of 19.5%. By the end of 2023, China had seen continuous growth in outbound direct investment for four consecutive years. These figures highlight the robust and rapidly growing momentum of overseas expansion across the nation.
In 2024, Chinese companies accelerating their global expansion have demonstrated resilience and notable progress. In specific sectors, the pharmaceutical industry has achieved outstanding success abroad, with the transaction volume of dual-antibody drugs exceeding RMB 14 billion. The gaming and cross-border e-commerce sectors have also made strong advances, with the domestic game “Black Myth: Wukong” gaining significant traction overseas, and the “Four Little Dragons” of cross-border e-commerce actively expanding into new markets with different strategies. Tea and coffee brands have successfully expanded abroad, with HeyTea and Cotti leading the charge in bringing Chinese tea and coffee culture to the global stage.
Looking at future trends, the global market is presenting diverse opportunities, with emerging markets such as Southeast Asia, Latin America, the Middle East, and Africa becoming particularly attractive to Chinese companies seeking to adjust their strategic plans. Developed markets like Europe, North America, Japan, and South Korea offer opportunities for Chinese companies to optimize global resource allocation, drive innovation, and become key pillars for the international growth of Chinese enterprises.
Europe, known for its high brand value, technological innovation, and regulated markets, presents valuable opportunities for Chinese companies to enhance brand recognition, access cutting-edge technology, and expand into green and digital sectors. Products in the European market are moving toward the mid-to-high-end range, with some Chinese companies promoting localized manufacturing and operations in Europe. This approach not only reduces transportation costs and improves supply chain efficiency but also better meets local demand and navigates European trade policies and environmental requirements. However, localized manufacturing also faces challenges, such as rising labor costs and seasonal labor imbalances, requiring companies to take a long-term view of their supply chain strategies. Despite progress in the European market, Chinese companies still face significant challenges, including the need to enhance brand awareness, overcome high entry barriers due to European consumers’ brand loyalty, address differences in culture and consumption habits across countries, and navigate strict regulations and standards.
The North American market, known for its large scale, advanced economy, and well-established infrastructure, offers Chinese companies opportunities to expand operations, achieve economies of scale, and facilitate industrial upgrading. North America’s market is characterized by strong purchasing power and high demand for various products and services. Brands like TCL and Hisense have seen their sales in North America increase steadily year after year, thanks to strong local demand. However, in recent years, the U.S. government has implemented several protectionist trade policies, such as raising tariffs and imposing trade barriers, which have created challenges for Chinese companies exporting to the North American market. Additionally, the significant cultural and legal differences, coupled with intense competition, are factors that Chinese companies must carefully consider when entering the North American market.
The Japan and South Korea markets are notable for their strong purchasing power, excellent R&D capabilities, convenient logistics, and high brand recognition. These markets are important strategic targets for Chinese companies looking to break through technological bottlenecks, enhance global brand influence, reduce labor costs, and optimize logistics. Some Chinese consumer electronics brands have gradually gained recognition in Japan and South Korea due to their high cost-performance ratio, advanced technology, and improving quality. For instance, in the second quarter of 2024, Xiaomi’s market share in Japan reached 6%, with the Redmi 12 ranking among the top three best-selling models in the Japanese market in July 2024. However, local consumer electronics giants such as Sony, Panasonic, Samsung, and LG have a strong presence in these markets, boasting advantages in brand influence and technological R&D. Chinese companies need to continue their efforts in brand building and technological innovation to enhance their competitiveness in these markets.
To explore new opportunities and challenges in overseas markets more deeply, EqualOcean’s Globalization Think Tank will host the “Overseas Insights Forum” on December 19 in Shanghai. Entrepreneurs focused on global expansion are warmly invited to gather and share frontline insights from different continents, unveiling the mysteries of overseas markets and offering in-depth analysis of the most realistic international opportunities. The following is a list of some of the invited keynote speakers (in no particular order):
Li Ping, CEO of Akeso, Li XianDe, Chairman of JinkoSolar, Liu Jingqi, Chairman of Broad Clean Energy, Wan Jun, CEO of DeepWay, Cao Ren, CEO of Sungrow, Zhou Jing, Head of Overseas Business at Semir, Lin Wei, Director of M&A at Midea, Wang Huan, Head of Korean Market at ChaBaiDao, Guo Zhenyu, Founder of Winona, Liu Jingkang, Founder and CEO of Insta360, Li Jingyan, Partner at PTMind, Li Lucheng, Founding Partner of Asu Capital, Yao Gang, Vice President of Vide Technology, Guo Xiruo, Founder of MoKe, Evelyn, Head of Overseas Business at Perfect Diary, Li Hongwei, CEO of Thunderbird Technology, Gu Zhenyu, Founder of Vesta, Qian Cheng, CEO of Ecovacs, Zhang Junbin, Founder and CEO of Narwal, Gu Rui, Founder of Metavita, Liu Kelu, CEO of HungaryPanda, Dai Shuxiang, Partner at Red Harp, Dai Kangwei, Chairman of BAIC BluePark, Chen Situo, CEO of XinHong Technology, Liu Zuohu, Founder and CEO of OnePlus, Yang Tao, CEO of Sunsea AIoT, Xie Bin, Executive Vice President of Kilimall, Zhang Xin, Founder of BUFFALO, Zhang Yufan, Founding Partner of Zentou Capital, Fan Lianghua, Co-Founder of Callisto, Yan Beibei, Director of Strategic Investment at Transsion, Long Zhiyun, CEO of Pyxis, Zha Jiulan, Founder of Egatee…
The “Overseas Insights Forum” is one of the parallel sessions of the “2024 GoGlobal Forum of 100 • Shanghai” (GGF2024Shanghai). This event is set to be the most anticipated and highly regarded industry conference in the second half of 2024, focusing on global expansion. In addition to releasing in-depth industry, brand, and regional reports, as well as the prestigious GoGlobal TOP100 list, the forum will also feature a CXO-themed dinner, on-site networking sessions, a GoGlobal product exhibition, and private one-on-one meetings.
The “2024 GoGlobal Forum of 100 • Shanghai” (GGF2024 Shanghai) is expected to attract more than 3,500 participants, with approximately 75% being executives and above. Over the course of two days, the event is projected to reach over 10 million people through both online and offline channels. EqualOcean warmly invites companies, investment institutions, academic organizations, media outlets, and industry associations that are focused on global expansion to join and make this a landmark event for the “GoGlobal” community.
In times of rising challenges and anti-globalization trends, it is even more important to be bold and venture abroad! Click to read the introduction to the “2024 GoGlobal Forum of 100 • Shanghai” or scan the QR code to inquire about partnership opportunities.