Chinese businesses advised to identify distinct markets overseas

More than 80 representatives from businesses and universities gathered in Shanghai on Saturday to discuss the opportunities and challenges faced by Chinese companies looking to go international.

The meeting was hosted by the Faculty of Business for Science and Technology at the University of Science and Technology of China.

Hu Jie, a professor of practice at the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, highlighted in his keynote address that economic globalization has entered into a new era, where countries and businesses need to pay attention not only to economic growth but also to consider whether the parties involved hold similar values.

"In today's new international environment, people are looking for new structures for global governance," he said.

He advised Chinese businesses in different industries to focus on distinct target destinations overseas when designing plans for going international. "For example, Southeast Asia is an ideal market overseas for Chinese enterprises in infrastructure construction, and Europe and North America are probably the best for those in consumption," he said.

Hu also reminded Chinese entrepreneurs to remain alert to ensure that their global supply chains are stable.

"China is a global manufacturer of goods and components for many industries but in addition to having a mature supply chain at home, Chinese businesses must also have complete control of their supply chains internationally," he said.

According to statistics from global consultancy Bain & Co, the amount of overseas funds of Chinese enterprises in 2023 increased by 11 percent year-on-year. More than 3,500 A-share listed companies in the country had overseas businesses last year, accounting for more than 66 percent.

Mu Jiayi contributed to this story.