Chinese companies have potential for global expansion but may face challenges from new tariffs

From CNBC: 2024-06-16 09:10:31

Chinese companies are showing potential for international expansion with only 11.7% of total revenue coming from outside mainland China last year. Japanese companies, in comparison, had 35.3% of revenue from overseas. Analysts are optimistic about the global expansion opportunities for Chinese consumer companies such as Gongniu, Anker, Zhejiang Dingli, and Snibe.

Despite potential, new U.S. and EU tariffs could impact Chinese companies looking to expand overseas. However, China’s overseas direct investment is still relatively low compared to Japan and Germany. Analysts believe investing in local factories and subsidiaries can help boost employment in other countries and support global growth. options.

As the conversation around trade relations evolves, Chinese companies are seeking opportunities in new markets. The Association of Southeast Asian Nations has become China’s largest trading partner by region, surpassing the European Union. Analysts are hopeful for continued growth in overseas markets for Chinese companies despite potential challenges from tariffs and changing trade dynamics.



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