In 2025, going global has become a core topic of concern for Chinese enterprises and even the whole nation. Against the background of white-hot competition in the domestic market and the restructuring of the global industrial chain, going overseas is not only an inevitable choice for enterprises to break through bottlenecks, but also a new engine for China's economic development, as well as an important opportunity and challenge for entrepreneurs in the next 5 to 10 years.
The current state of seafaring in 2025: large-scale, hasty and purposeful group seafaring
Groups go global: In 2025, China's manufacturing industry has opened an unprecedented large-scale global layout. From the smart home, new energy vehicles to high-end equipment manufacturing, many industries have been ‘going to war’, supply chain upstream and downstream enterprises synchronous migration, the formation of a large and complete industrial ecology. This group of overseas, not only is the collective action of China's manufacturing industry, but also an important part of the reconstruction of the global industrial chain.
Rush to go global: The tariffs imposed by the US on Chinese products in 2018 have become an important catalyst for Chinese companies to go overseas. OEMs and component factories are moving out of China at an accelerated pace, while the transformation of Chinese companies from ‘manufacturing centres’ to ‘innovation drivers’ has yet to be completed. Many companies are not going global with mature capabilities, but are gradually developing new capabilities in the process of going global. This kind of hasty going global, while challenging, also brings new room for growth.
Strong Purposeful Going global: Whether passive suppliers or active brand owners, enterprises generally feel the strong pull to go overseas. Despite the voice of ‘anti-globalisation’, new factories are still emerging globally, and Chinese manufacturing is still the ‘meat of the heart’ that all countries are competing for. Going global is not only an inevitable choice for enterprises to cope with market changes, but also a strategic initiative to enhance competitiveness and expand development space.
Uncertainties arising from Trump's return to power
In 2024, China's trade surplus approached a trillion dollars, a record high. This figure has put China at the centre of global attention and has also triggered increased trade friction. The United States has imposed tariffs on Chinese products in an attempt to undermine the competitiveness of China's manufacturing sector through protectionist means. However, the structural degradation of the U.S.'s own manufacturing sector, especially the difficulty of returning low-end manufacturing to the U.S., has made it difficult to achieve this goal.
The Trump administration has tried to solve the problems of manufacturing reflux and high inflation through tariff policies, but there is an irreconcilable contradiction between the two. The U.S. needs to leverage the synergy of Mexico, Canada, and China in order to address this dual challenge. For Chinese companies, Trump's policies have brought great uncertainty, but they have also prompted companies to rethink how to take root globally and improve their ability to resist risk.
Major difficulties in the era of globalisation 2.0
Decentralised restructuring of supply chains: In the era of globalisation 2.0, supply chains have been restructured from a centralised China to a decentralised multi-country restructuring. Chinese enterprises are facing the dilemma of lack of protection for chain owners, and lack of the ‘leading effect’ of chain owners like Samsung in South Korea. Without the traction of chain owners, small and medium-sized enterprises (SMEs) will face greater challenges in going overseas. Therefore, Chinese enterprises need to find a new cooperation mode in the globalisation layout and enhance their position in the global industrial chain.
Cognitive Space Challenge: Enterprises going global need to establish a reasonable cognitive space in different countries and gain a deep understanding of the local culture, regulations and rhythm of life. Cultural differences may lead to management conflicts, and unfamiliarity with regulations may lead to legal risks. For example, in India, locals are used to collective decision-making, while in Brazil, employees are more focused on work-life balance. Such cultural differences, if not handled properly, may lead to inefficiencies and even labour disputes.
Localisation and benefit design:Geely, for example, has established factories in Europe and become a ‘citizen enterprise’ of the local community by working with local companies to achieve benefit sharing and cultural integration. This localisation strategy not only enhances the company's social image, but also strengthens its viability. For Chinese companies, going overseas is not only about building factories, but also about profound changes in organisational structure, management system and corporate mindset.
Insights from the experience of Japanese enterprises in going overseas
Government top-level design and support: The Japanese government has systematically promoted enterprises' going global through the “Black Letter Circulation” programme, financial subsidies, tax incentives and policy-based financial support. This top-level design provides enterprises with strong policy protection and reduces the risk of going global.
Perfect service system: Japan External Trade Organisation (JETRO) provides market intelligence, investment guidance and cross-sectoral coordination to help enterprises take root overseas. Through the perfect service system, Japanese enterprises can better adapt to overseas markets and enhance their competitiveness.
Enterprises going global as a group: Taking Toyota, Honda and other large enterprises as chain masters, they drive upstream and downstream small and medium-sized enterprises to go overseas together, forming a complete industrial chain ecology. This mode of going global in a group not only enhances the synergy effect of enterprises, but also strengthens the competitiveness of the whole industrial chain.
Emphasis on expatriates and family protection: Japanese enterprises overseas attach great importance to the life and children's education of expatriate managers, and ensure family stability by establishing international schools and other means. This kind of care for employees‘ families not only enhances employees’ sense of belonging, but also becomes an important support for the internationalisation of enterprises.
Evaluation of the Adaptability of Enterprises Going global: Two 30% Models
Overseas Revenue Ratio ≥ 30%: Overseas revenue ratio is an important indicator of the health of an enterprise's internationalisation financial model. Currently, the average overseas revenue share of listed Chinese enterprises is about 11%, which still has much room for improvement. Enterprises need to achieve internationalisation transformation by expanding overseas markets and increasing the proportion of overseas revenue.
Overseas production capacity ≥30%: The proportion of overseas production capacity reflects the depth of an enterprise's global layout. This indicator not only poses a challenge to the enterprise itself, but also puts forward higher requirements for the transformation of China's manufacturing industry. Enterprises need to rationally deploy their production capacity globally and improve the resilience of their supply chains.
Through these two indicators, enterprises can better assess whether they have the internationalisation capability, and promote the transformation from ‘fake going global’ to ‘real going global’
Golden location and strategic layout for overseas expansion in the next 5-10 years
Diversified golden location: In the next 5 to 10 years, there will be opportunities around the world. Enterprises should not only choose their overseas destinations based on cultural similarities or risk assessments, but should also consider their strategic positioning and position in the value chain. For example, a Chinese photovoltaic company monopolized the Moroccan photovoltaic market through precise positioning and obtained substantial profit returns.
Regional layout trend: Southeast Asia has seen significant investment growth, with manufacturing accounting for over 50%. Many enterprises adopt the "regional headquarters+satellite base" model to enhance market adaptability and supply chain resilience. This regional layout not only reduces costs, but also enhances the competitiveness of enterprises.
Supply chain spillover effects: During the process of going global, enterprises can utilize supply chain spillover effects to achieve industrial linkage and synergy. For example, the advancement of electronic chip manufacturing technology can support the development of the intelligent hardware industry, forming a coordinated development of upstream and downstream industries.
Rooted in brand and quality: Huawei's brand building in Europe has driven its expansion in the global market, while the overseas deployment of DJI drones has also formed a virtuous cycle. The rooting of brand and quality is the key to a company's success in going global.
Long term perspective: Going global is not a temporary solution, but an important component of the strategic layout for the next 10 years. Entrepreneurs need to plan the path of globalization with a more calm demeanor and a longer-term strategy.
Conclusion
In 2025, Chinese enterprises set a new historical starting point for going global. Faced with opportunities and challenges, enterprises need to enhance their strategic awareness, build internationalization capabilities, and truly integrate into the global market. Going abroad is not only about building factories, but also a profound transformation of organizational structure, management system, and corporate mindset. Only in this way can enterprises stand invincible in global competition and inject new impetus into the development of the Chinese economy.
