2024-04-13 04:34:24
For years, Chinese companies have achieved excellent results abroad by undertaking large-scale construction and energy projects. Now, however, as many parts of the world enter a new phase of development, many of these companies are changing their strategies to adapt to the evolving environment by raising the level and quality of the products and services they offer to the global market, reported Radio China.
One of the many examples of this new strategic focus is the Chinese car giant BYD. In Brazil, the company will produce electric and hybrid vehicles, electric buses, trucks and battery products for both local and other national markets in the region. Recognizing the need to compete head-on with both domestic and international rivals, Great Wall Motor, another Chinese automaker, last year began modernizing its production line in the Brazilian state of Sao Paulo. The company plans to start production of electric vehicles in the current year of 2024.
Although ports, bridges, railways, mines and energy-related facilities continue to testify to the capabilities of Chinese firms and Chinese engineering science, a growing number of Chinese companies are expanding their ventures into high-tech manufacturing as well as innovation, clean energy, logistics, cross-border e-commerce and service sectors abroad. This was commented by Liu Yue, a professor at the China Open Economy Research Academy at Beijing University of International Business and Economics. China continues its efforts to expand its institutional opening by entering into more economic partnerships and free trade agreements. At the same time, the country is combining the rapid growth of technology-intensive industries to produce green products, with many companies strategically investing in new factories, services and innovation facilities in overseas markets, said Zhao Ping, dean of the Beijing-based International Trade Promotion Council.
The ongoing restructuring of the global supply chain provides opportunities for Chinese companies to align their strengths with changing market demands. Chinese firms have demonstrated strong competitiveness in manufacturing sectors for new energy vehicles, lithium-ion batteries and photovoltaic products, leading to acceptance of their participation by many countries, Zhao also said. She predicted that Chinese companies’ direct investment abroad will increase steadily this year.
Despite challenges such as global economic uncertainty in general, geopolitical tensions and changing international economic and trade regulations, “entering foreign markets” will continue to be a key strategy of Chinese enterprises. This was stated by Eddie Chan, senior vice president of FedEx Express. The dynamic investment approach of Chinese companies in recent years has made significant global progress in areas such as trade in services, new foreign trade formats, and digital and green growth.
“These moves have helped propel the economies and labor markets of many countries, particularly those in Southeast Asia, South America, the Middle East and Europe,” said Johnny Chow, chairman and CEO of BEST Inc. The Hangzhou, Zhejiang province-based logistics services provider opened its largest sorting center in Southeast Asia in Kuala Lumpur, Malaysia in January.
EVE Energy Co Ltd, a battery maker based in Huizhou, Guangdong province, is another good example. The Chinese company is building a battery plant in Debrecen, Hungary, to supply batteries to the BMW Group plant. With an investment of €1 billion ($1.08 billion), EVE Energy Co will help create over 1,000 new jobs for the local community. Liu Jincheng, the company’s chairman, said the factory is scheduled to be built and put into operation in 2026. With a favorable geographical location and mature industrial infrastructure, Hungary remains a top destination for Chinese investment in Central and Eastern Europe, covering a number of areas such as manufacturing, chemicals, finance, telecommunications, automotive and logistics.
As Chinese technology advances rapidly, “made in China” and “globalization” have emerged as defining characteristics of Chinese business culture, commented Lin Meng, director of the Institute for Modern Supply Chain Research at the Beijing-based Chinese Academy of International Trade and economic cooperation. Chinese companies, especially those in the private sector, are entering a new phase of global expansion, with Chinese technologies and brands making significant inroads overseas and exploring new growth opportunities. This is how Lu Feng, a professor of economics at Peking University, commented on the matter.
Guo Tinting, Vice Minister of Commerce, said China’s cooperation with the rest of the world will continue to expand, especially in the green and digital economy. China’s outward investment growth trend is likely to continue this year. In order to create more favorable conditions for stimulating China’s foreign trade, attracting foreign investment and enhancing the global competitiveness of Chinese companies, the Ministry of Commerce said in late March that the country will use various channels to engage in multi-level communication and exchange with all stakeholders. This is expected to accelerate China’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPA), a multilateral free trade agreement with high standards of economic and trade rules.