TikTok to Huawei, Jacky Zhang Interprets the Path to Globalization for Chinese Companies
Updated: Jun 3
Jacky Zhang, President of the Euro-Americas-China Investment Promoting Association (EACIPA). Photo credit: Courtesy EACIPA
In an era marked by deep global economic integration, Chinese enterprises are venturing into international markets at an unprecedented pace. Recently, Jacky Zhang, President of the Euro-Americas-China Investment Promoting Association (EACIPA), delivered a comprehensive analysis of the latest trends and strategies for Chinese companies expanding abroad at the China Enterprise Internationalization Strategy Forum. His insights and strategic recommendations have drawn significant attention across the industry.
Jacky Zhang highlighted that the dual pressures of rising global trade protectionism and intensified domestic competition are driving both large listed companies and private enterprises to increasingly focus on overseas markets.
Zhang noted that the proportion of overseas revenue for A-share listed companies has risen from 5%-6% a decade ago to 11.5% in 2023. Furthermore, overseas gross profit margins often surpass domestic margins, indicating higher revenue potential and profitability.
China’s private sector, which contributes over 50% of tax revenue and more than 60% of GDP, and accounts for over 90% of enterprises, is spearheading this international push. Characterized by large numbers and high flexibility, these private enterprises are expanding through innovation and collaboration, boosting their own growth while providing new opportunities for global markets and supply chains.
Zhang observed that Chinese enterprises have transitioned from initial exploration to a comprehensive global strategy. This shift is not only seen in the rapid expansion of overseas business but also in the emphasis on global brand and technology export.
Zhang outlined three primary modes of international expansion: mergers and acquisitions, self-built investments, and establishing cooperative relationships with suppliers. Each mode has distinct advantages, but all require careful consideration of brand characteristics, industry attributes, and the cultural and consumer habits of target markets. For instance, Alibaba's acquisition of Lazada facilitated its entry into the Southeast Asian market, while Pinduoduo's creation of the Temu platform opened new pathways for international growth.
Looking ahead, Zhang sees the digital economy as a major driver for Chinese companies going global. By leveraging "artificial intelligence+" technologies, companies can integrate technology and business, promote industrial upgrading, and optimize economic structures. He emphasized that advances in areas such as 5G and AI have positioned Chinese firms to achieve significant gains in intelligence across sectors like automobiles, home appliances, industrial equipment, and software applications, thereby unlocking global development opportunities.
At the forum, Zhang also highlighted several successful international ventures. Huawei has established R&D centers in multiple countries, continuously innovating to meet local demands; ByteDance’s TikTok has significantly impacted the American youth market, showcasing the international reach of Chinese digital culture. These examples underscore the competitiveness and global potential of Chinese enterprises.
EACIPA, under Zhang’s leadership, is dedicated to fostering economic exchanges and investment cooperation between Europe, America, and China. It stands as a significant NGO in global financial investment and trade development, integrating high-end international resources to build a global, open investment promotion platform. This facilitates the entry of European and American industries into the Chinese market and supports Chinese industries and enterprises in going global.
With branches and partnerships in over 40 countries, EACIPA supports Chinese enterprises in expanding production, branding, and technology globally through localized services and multilingual platforms. It aids in market exploration, recommending partners, and providing services such as financial capital, market information, policy interpretation, and business matching.
EACIPA’s strategic initiatives include cooperation with the Italian China Foundation, establishing the EACIPA Italy Branch. Photo credit: Courtesy EACIPA
Partnership with the Fortune 500 Pacific Construction Group to help its projects and capital enter global markets. Photo credit: Courtesy EACIPA
EACIPA’s "Investment Cooperation Summit Forum" brings together global investors, entrepreneurs, and experts to discuss trilateral investment cooperation prospects between Europe, America, and China. Photo credit: Courtesy EACIPA
Following the easing of China's epidemic policy, EACIPA coordinated visits from Chinese regional governments to EU countries, facilitating investment and market entry for Chinese enterprises. Photo credit: Courtesy EACIPA
Visits to Yisanda Group, supporting Chinese enterprises’ expansion into the African market. Photo credit: Courtesy EACIPA
Concluding the forum, Zhang advised companies on future strategies, emphasizing the importance of technological advancement and the digital economy. He highlighted the need for localization and regionalization strategies, understanding target market dynamics, and implementing customized market strategies to achieve long-term global success.
As Chinese enterprises continue to innovate and adapt to the changing global market, their success will significantly bolster China's broader globalization strategy.
Euro-Americas-China Investment Promoting Association is a non-profit, non political international organization primarily responsible for promoting economic exchanges and investment cooperation between European and American countries and China. Through close cooperation with governments, non-governmental organizations, academia, the private sector, and other charitable organizations around the world, the European and American China Investment Promotion Association has contributed strong impetus to the prosperity and development of the global economy.
Since its establishment, Euro-Americas-China Investment Promoting Association has gathered investment promotion institutions from over 40 countries, over 5000 internationally renowned experts, scholars, professors, and members, as well as over 4000 outstanding entrepreneur members. The core philosophy shared by these members is to prioritize talent, capital, industry, and integrated operations. This concept aims to strengthen economic cooperation between regions and promote global mutual benefit and win-win outcomes. By integrating high-end international resources, the Investment Promotion Association of Europe, America, and China has created a global and open investment promotion service platform, making positive contributions to the economic prosperity and development of Europe, America, and China. Therefore, Euro-Americas-China Investment Promoting Association is known as an important civil organization that builds a bridge of mutual understanding between the world and China, and promotes the integration of China and the world.
Article and photos courtesy EACIPA.
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