context: Going global 2.0, the Belt and Road Initiative and capacity cooperation, predominantly targeted conventional industries and sectors, yielding modest outcomes to date. A shift from traditional industries to new areas, such as green energy and new energy vehicles, can now be seen. This shift is in line with China's broader goal of becoming a leader in innovation and sustainable development.
The next ten years will mark a significant turning point for global Chinese enterprises, says Jin Lingyun 金凌云 Deloitte China senior partner, noting while Chinese companies have grown in size and output, true globalisation is still in its early stages.
In the past decade, Chinese companies have primarily focused on mergers, acquisitions and investments to expand globally. However, to become truly multinational corporations, Chinese companies still have a lot to learn.
Looking ahead, the globalisation of Chinese enterprises will face challenges due to factors such as geopolitics and the country's economic development stage; it may be difficult for large-scale mergers and acquisitions like Sinochem's acquisition of Syngenta to occur again, he says. Nevertheless, the future of Chinese enterprises' globalisation is promising, he argues, as many Chinese companies will continue to focus on advantageous fields like new energy and e-commerce. Companies such as Shein and BYD will likely become the new driving forces for Chinese companies to expand overseas, he says.
Jin points out that a significant challenge facing Chinese companies as they expand globally is how to effectively manage teams in non-local markets, whether through mergers or overseas ventures. Traditionally, Chinese companies have relied on a model of strong control from headquarters, as seen in large state-owned enterprises and companies like Huawei. To succeed in the global market, however, Jin stresses that Chinese enterprises must prioritise adapting to local markets, bridging gaps in business culture, and achieving localised development. In the future, effective localisation strategies will become increasingly important for Chinese companies looking to expand globally.