Chinese companies expand boldly around the world

Chinese companies are diversifying strategies to expand their global footprint, including mergers and acquisitions, franchising, overseas R&D and manufacturing, as well as clean technology development, participants said at an industry forum.

This approach aims to foster high-quality globalization, optimize global supply chains, and address global challenges like climate change.

Chinese companies like Lenovo, Miniso and Geely shared their experiences in international expansion, while experts, policymakers and industry observers also participated in the forum.

Bai Chongen, an economist and chair of Tsinghua University's School of Economics and Management, emphasized the opportune moment for Chinese firms to accelerate globalization. With advanced manufacturing capabilities, rapid innovation, and a strong domestic market, Chinese companies are well-positioned to balance global trade and optimize supply chains.

Lenovo, the world's leading PC maker, has a significant global presence, with 75 percent of its revenue generated in overseas markets. Yang Yuanqing, Lenovo's chairman and CEO, highlighted the company's commitment to further global expansion that will be driven by AI-powered innovations and a strong focus on ESG (environment, social and governance).

Since acquiring IBM's PC business in 2005, Lenovo now has business operations in 180 countries and regions.

Chinese companies are diversifying their global expansion strategies, moving beyond traditional manufacturing and electronics to sectors like electric vehicles, renewable energy, and cultural products. Automaker Geely, for instance, now derives half of its revenue from overseas markets and employs a third of its workforce outside of China.

Miniso products often based on pop culture

Miniso, a global retailer known for its affordable and trendy products, has successfully expanded to 7,000 stores worldwide, including 2,800 stores in more than 110 overseas markets. The company leverages its strong design capabilities and advanced manufacturing in China to offer pop culture products to global consumers.

Miniso hit the market in Shanghai with a pop-up store in Jing'an Joy City with Chiikawa toys in May and a flagship store opened in Shanghai in October with new Harry Potter products. It plans to open about 900 stores annually in the future, the company recently said in Shanghai.

Ye Guofu, Miniso's chairman and CEO, emphasized the role of Chinese brands as cultural ambassadors besides business opportunities. Miniso's collaboration with Xinhua News Agency aims to promote 100 Chinese IPs globally over the next decade.

While Chinese companies are making significant strides as they expand around the world, they also face challenges such as geopolitical risks and evolving environmental and social concerns in local markets. Navigating these challenges will be crucial for sustained success in the global arena, experts told the forum.