Shanghai Can Be the Launch Pad for Chinese Firms Going Global

Editor's note:

The International Business Leaders' Advisory Council for the Mayor (IBLAC) brings together top executives from leading multinationals to exchange insights on Shanghai's development strategy. Each company brings forward a paper that draws from their global practices and local insights. Shanghai Daily has selected and summarized some of the astute suggestions to this city.

Against the backdrop of global economic reconfiguration, Chinese enterprises are accelerating global expansion to tap new markets, secure talent and build supply chain resilience. As a major international commercial hub of China, Shanghai is well placed to support such outbound growth.

Drawing on its global banking experience, HSBC analyses key success factors for overseas expansion, including resilient supply chains, accessible financing, responsible cross border data movement, multiple jurisdictional compliance and agile execution.

China advances two way global integration. Backed by national policies, the Belt and Road Initiative and RMB internationalization, China's outbound direct investment achieved robust growth in 2025. Shanghai has leveraged offshore RMB schemes, FTZ reforms and innovation policies to facilitate corporate globalization, yet local firms still grapple with supply chain complexity, cross border treasury pressure, fragmented overseas regulations, talent gaps and international brand trust building challenges.

HSBC distills practical lessons from global players by comparing two typical overseas expansion models among leading domestic original equipment manufacturers: a decentralised multi brand approach and a vertically integrated unified brand model. Their practices reveal trade offs in operational modes, treasury arrangements, talent cultivation and brand positioning, delivering meaningful references for Chinese companies venturing abroad.

Under this context, HSBC puts forward three sets of recommendations for Shanghai to optimise policy and institutional frameworks:

1. Scale up RMB denominated financial infrastructure to unlock cross border capital efficiency.

Shanghai may simplify RMB cross border settlement procedures, strengthen onshore financing capacity, enrich hedging instruments for corporate treasury operations, broaden cash pooling eligibility, and mitigate market frictions between onshore and offshore RMB.

2. Enhance coordinated professional service support for enterprises' global outreach.

It is advisable to launch dedicated service tracks for tech-driven firms, replicate proven cross border industrial cooperation models, and empower professional service alliances to provide integrated one stop overseas expansion solutions.

3. Advance international standards and green compliance to lower market entry barriers.

Shanghai should deepen participation in global standard setting bodies, expand green finance tools, and pilot mutual recognition of certifications within FTZ to streamline overseas market access.

With solid foundations, Shanghai can turn institutional strengths into tangible benefits for outbound enterprises. By improving financial infrastructure, global oriented service platforms and alignment with international rules, Shanghai can develop into a premier hub supporting Chinese firms' global expansion.

Leveraging its worldwide network, cross border financial expertise and deep local insights, HSBC stands ready to partner with Shanghai to support local corporates in navigating overseas markets and elevating their global competitiveness.