Support needed for Chinese companies going global

Editor's note: The Chinese government has emphasized that it attaches importance to both the country's gross domestic product and gross national income. The 21st Century Business Herald spoke to Zheng Yongnian, the dean of the School of Public Policy at The Chinese University of Hong Kong, Shenzhen, about China's path toward globalization. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

The GDP of the Chinese economy primarily refers to economic activities within the country. GNI, or gross national income, measures the earnings of a country's people and companies, both domestically and abroad, and is referred to as the "Chinese people's economy". In other words, the "Chinese economy" is domestic, while the "Chinese people's economy" is global.

This distinction reflects the significance of China's opening-up policy and has practical implications for how Chinese enterprises plan their business strategies. It is about Chinese companies expanding overseas and becoming truly international. Such expansion not only opens larger markets for their technologies and products, but also supports their long-term growth.

When economies grow to a certain level, their domestic markets inevitably reach saturation point, prompting companies to explore other markets. Chinese companies have been going global for years, but the pace has accelerated in recent years. This trend reflects the Chinese economy's deeper integration with the world and its increasingly prominent voice in global markets. Companies with the right conditions should be encouraged to build global operations rooted in China, thereby contributing to the development of a mutually beneficial "Chinese people's economy".

China's path to globalization is different from that of Western countries. China does not rely on force. Its going global is driven by its industrial and production capabilities.

These capabilities should be seen as a source of strength. When Chinese enterprises go abroad, their capabilities should create value for host countries by supporting local industry, jobs and growth. The goal is to expand the overall economy, not compete for a fixed share. Building infrastructure is critical, as it lays the foundation for development. This way the overseas expansion of Chinese companies can become sustainable.

However, there are still challenges to be overcome. For one, the support systems for companies operating abroad need improvement. Some firms expand without clear strategies and suffer losses. There are also risks to overseas assets in regions with political instability. Stronger mechanisms are needed to protect these interests.

China should promote what can be called "open-source modernization". This means sharing development experience, technology and capacity with other countries so they can adapt them to their own needs. Development should be inclusive, not exclusive.

Globalization is a complex and long-term process. China is still at an early stage, with room to improve in knowledge, institutions, government services and risk protection. It is important to face challenges directly. Both domestic and overseas issues need to be identified and addressed with practical solutions. This is key to sustainable growth.

China already has a number of successful global companies, but their experiences have not been properly summarized. Meanwhile, mixed and sometimes misleading information in the market can influence corporate decision-making. Companies that are already doing well overseas could play a larger role by sharing their experience, technology and resources with others.

Chinese enterprises also need to pay attention to how they present themselves overseas. Alongside products and markets, they should build clear and credible narratives. Strong corporations often have compelling narratives backing them.

Today, Chinese companies going abroad need to articulate a confident and positive narrative. Many have done remarkable work but struggle to communicate it effectively. Business leaders should go beyond describing products and operations. They should explain the thinking and values behind their global strategies, and clearly tell the story of the "Chinese people's economy".