Representatives and committee members have heated discussions: How can Chinese enterprises go global from "going out" to "integrating in"?

This year's Government Work Report proposed to "expand two-way investment." From "product going global" to "system going global," and from "going out" to "going in and going up," Chinese enterprises are accelerating their integration into the global industrial chain. Regarding how to address challenges in the new stage and how to avoid "involution-style" competition and achieve high-quality going global, the Dajiangdong Studio of People's Daily interviewed three deputies and members during the Two Sessions.

During the Two Sessions, the Dajiangdong Studio had a conversation with three deputies and members. Illustration by Qian Youyi.

01

Shifting from "product going global" to "capability going global,"

The biggest challenge is compliance with cross-border data flow

Dajiangdong: Data released by the Ministry of Commerce shows that in 2025, China's outward direct investment reached $174.38 billion, a year-on-year increase of 7.1%, ranking among the top in the world. Chinese enterprises going global have created an average of over 2 million jobs annually. They have funded the construction of a large number of education, health, environmental protection and livelihood facilities. What new trends are emerging in the going global of Chinese enterprises?

Jiang Ying (Member of the National Committee of the Chinese People's Political Consultative Conference, Chairperson of the Board of Deloitte China): The globalization of Chinese enterprises has entered a new stage, accelerating the shift from "product going global" to "capability going global" - building factories overseas, setting up R & D centers, contributing technologies to local areas and assisting in industrial upgrading. This change is mainly due to the improvement of the international competitiveness of Chinese enterprises.

Currently, the going global models of Chinese enterprises can be classified into four categories. The first is the going global of the supply chain, that is, upstream and downstream enterprises follow the "chain leader" enterprises to go global. Representative enterprises include BYD, CATL and Xiaomi. The second is technology output, such as the overseas authorization of innovative drugs in China, like Qide Medicine, and the output of brands and culture, such as Pop Mart. The third is "born global," that is, enterprises have carried out global operations in overseas business since their founding, such as WuXi AppTec and SHEIN. The fourth is joint going global, that is, foreign-funded enterprises in China and local enterprises go global jointly. Local enterprises give full play to the advantages of China's supply chain system and manufacturing, while foreign-funded enterprises give full play to their influence in overseas markets. For example, Geely and Renault cooperate in technology, capital and market.

Zhang Fan (Deputy to the National People's Congress, Deputy General Manager of China Electrical Equipment Group): I have also noticed that the way Chinese enterprises go global is changing. In the past, it was "factor output," and now it has more shifted to a higher level of "value creation." This means that enterprises not only need to take their products out but also make all-round progress in the high - end links of the "smiling curve" such as R & D, brand and service.

Dajiangdong: Are there any new challenges in this new stage?

Li Dan (Member of the National Committee of the Chinese People's Political Consultative Conference, Chief Partner of PwC Zhong Tian Certified Public Accountants LLP): Chinese enterprises going global are moving from "scale expansion" to "quality leadership." One of the biggest challenges in this new stage is compliance with cross - border data flow. At present, major global economies are accelerating the construction of regulatory barriers centered on "data sovereignty." For example, the EU's General Data Protection Regulation and the US Executive Order No. 14117 pose multiple challenges to the going global development of Chinese enterprises.

First, there is the dilemma of compliance. Enterprises not only need to cope with the increasingly standardized and refined regulatory requirements in China in the fields of overseas investment, cross - border data flow and industrial chain security, but also need to adapt to the continuously improving compliance standards of host countries in national security review, anti - monopoly, foreign investment access, environmental protection, ESG disclosure and other aspects. This cross - jurisdiction and multi - level regulatory pattern puts forward higher requirements for enterprises' compliance capabilities.

Second, there is the risk of barriers. Some rules are protectionist in nature, forming non - tariff barriers. The main manifestations are the rising exchange rate risk, the high cost of cross - border financing, the reconstruction of the global tax system (such as the global minimum tax reform) and the stricter tax supervision in various countries, which directly affect the long - term income stability and cash - flow security of enterprises' overseas investment and pose continuous challenges to enterprises' treasury and tax compliance management.

Finally, there is the pain of governance. The globalization governance level of enterprises lags behind the expansion of their business. The business scale of some Chinese enterprises has become international, but their global control system has not been established or matured synchronously. Without the support of systematic global governance capabilities, overseas business is prone to problems such as control disconnect, information gap and risk accumulation.

Jiang Ying: I need to add one point. The "negative list" has become an important system for China to manage the outbound flow of enterprise data. Multiple free trade zones in China have released negative lists for data outbound flow and issued supporting implementation documents. However, enterprises still face practical difficulties such as the lack of transparency in the management methods for data outbound flow outside the list, the limited coverage of industries and fields in the negative lists of different regions, and the inconvenience in querying and using guiding documents.

It is recommended that, first, the regulatory standards for data outbound flow in scenarios outside the negative list should be clarified, the implementation standards of each free trade zone should be coordinated and unified, and the convenience of data flow in free trade zones should be further improved. Second, the update pace of the negative list should be accelerated, and the state should quickly come up with implementable operation methods for the uncovered fields and how to refer to each other between free trade zones. Finally, the policy consultation and guidance services should be further optimized, and more convenient compliance tools should be introduced as soon as possible to reduce the burden on enterprises and strive to achieve the goal of "one - stop service."

02

Building a "three - dimensional response system,"

From "building a ship to go global" to "building a ship + building a port"

Dajiangdong: How to systematically address these challenges?

Li Dan: The essence of global competition has evolved from market competition between individual enterprises to an overall competition of industrial chain ecosystems. For example, in the fields of new energy vehicles and high - end equipment manufacturing, the "fleet - style going global" model led by leading enterprises and coordinated by supporting enterprises has shown significant advantages.

I suggest establishing an industrial chain collaborative innovation mechanism to promote upstream and downstream enterprises to form strategic alliances in technology R & D, standard setting and market development. Enterprises should be encouraged to deepen their interest binding through cross - shareholding, joint ventures and other means. At the same time, the construction of the industry information sharing platform should be improved, and the overseas investment risk warning and compliance guidance should be strengthened. The coordinating function of industry associations in capacity planning and market order maintenance should be brought into play, and an industry self - discipline and benign competition and cooperation mechanism should be established.

Zhang Fan: I focus on the three major pain points of finance, insurance and approval that Chinese enterprises encounter when "going out," and I have three suggestions in this regard.

First, financial support should be "precisely targeted." It is recommended to give preferential policy loans to key projects in line with the Belt and Road Initiative. At the same time, the facilitation of cross - border RMB settlement should be accelerated to help enterprises reduce exchange - rate risks from the source and use "local currency settlement" to support the going global of Chinese equipment.

Second, the coverage of traditional insurance products in high - risk areas is currently limited. It is recommended that relevant institutions develop new insurance types such as political risks and default risks for high - risk countries, and explore the establishment of a risk - pool model shared by the "government + enterprises" to provide a guarantee for enterprises daring to explore emerging markets, enabling them to go global boldly and take root.

Third, cross - border investment approval should be "implemented differently according to different categories." Currently, the approval of overseas investment projects involves many departments and takes a long time. It is recommended to establish a classified and hierarchical approval mechanism, open a green channel for major projects in line with the national strategy and simplify the process. At the same time, ESG performance and local commitment should be included in the evaluation indicators to guide enterprises to transform into "going in."

Dajiangdong: This year's Government Work Report proposed that in 2026, "involution - style" competition will be thoroughly rectified. How can Chinese enterprises avoid "involution - style" competition when going global?

Zhang Fan: Practical experience tells us that Chinese enterprises need more cooperation awareness when developing overseas. Many projects are large - scale and long - term. If we can give full play to the advantages of China's complete industrial chain and high - efficiency coordination, it is easier to form a joint force. For example, last year, we participated in a photovoltaic power generation project in Uzbekistan in the form of a consortium with China Huadian Group, creating the "Chinese speed" of "starting construction and connecting to the grid in the same year," and becoming one of the fastest - built new energy projects in the local area. This fully demonstrated the advantages of the comprehensive industrial categories of central enterprises and the cooperation between Chinese enterprises.

Chinese enterprises going global need to avoid simple price competition, even disorderly and malicious competition, and low - quality and low - efficiency "involution." If enterprises compete on price and make duplicate investments, they may win projects in the short term, but in the long run, it is not conducive to the development of the industry and will also affect the overall image of Chinese enterprises.

Dajiangdong: Facing the reality of high political, exchange - rate and payment risks in some countries, how can "going - global" enterprises conduct risk management and project screening? What successful experiences are there?

Jiang Ying: Our experience is to promote the joint construction of an "Overseas Comprehensive Service Station for Chinese Enterprises" by public service platforms, overseas Chinese business associations and professional service institutions. Drawing on the practices of foreign chambers of commerce, we can provide enterprises with localized risk warnings, compliance consultations, legal emergency assistance and rights - protection support.

It is recommended that the commercial offices of Chinese embassies and consulates abroad take the lead in selecting and certifying a number of professional institutions familiar with the local area and having experience in serving Chinese enterprises to form a localized service provider database. At the same time, domestic leading professional service institutions should be supported to "go global" through the establishment of branches, strategic alliances, consortia and other forms.

Zhang Fan: Risk prevention and control is not only a matter of system but also requires operable methods. Recently, China Electrical Equipment has gradually explored a risk - control system of "rigid constraints + in - depth supervision + leveraging professional forces," which has been quite effective in practice.

We adhere to three rigid rules: "not going to dangerous areas, not getting involved in gray areas, and abiding by local laws and customs." Through the dynamic risk - grading management of the global market, we eliminate the access to high - risk countries from the source. At the same time, we actively explore the use of digital means such as AI and big data to build a digital operation platform for international business, bringing the entire project process under online monitoring and achieving in - depth management of overseas projects to ensure that we "can see and control" them.

One tree cannot make a forest. Chinese enterprises going global not only need to unite but also need the support of professional forces. For example, they should actively cooperate deeply with professional institutions such as the Export - Import Bank of China and Sinosure, and use professional forces to deal with complex challenges such as exchange - rate fluctuations and country risks, so as to build an internal - external coordinated joint prevention and control mechanism.

03

Promoting "high - quality going global" through value enhancement, value co - creation and value sustainability

Dajiangdong: How to improve the quality of going global? How to serve the overall situation of national development?

Li Dan: High - quality going global should achieve three transformations: from scale expansion to value enhancement, focusing on technology spillover and brand premium; from zero - sum competition to co - development, building an open and collaborative industrial ecosystem; from market occupation to standard leadership, participating in and even leading the formulation of international rules.

Government departments can provide systematic support for enterprise transformation and upgrading through measures such as establishing an industrial chain going - global service platform, improving the cross - border financial service system and strengthening the docking of international rules.

This systematic going - global model can not only enhance the global competitiveness of Chinese enterprises but also bring multiple benefits such as technology transfer, job creation and industrial upgrading to the host countries, achieving win - win cooperation.

Jiang Ying: In the future, the enterprises that truly succeed in going global must be those that can integrate into the local economic and social network and achieve "value co - creation." The most important ability that enterprises need to improve to take root and adapt to local customs is the ability to "integrate," that is, to build a local ecosystem, contribute technologies to the local area, assist in industrial upgrading and create employment as strategic partners.

Zhang Fan: Chinese enterprises going global should achieve "value sustainability," which means high quality, sustainability and benefit to local people's livelihood. Through years of overseas practice, we have summarized several key principles.

First, quality comes first. Quality is the confidence for enterprises to go global. In the past decade, we have delivered more than 200 substations and more than 6,000 kilometers of high - voltage transmission lines in Belt and Road countries. A number of landmark projects we participated in, such as the Belo Monte Project in Brazil, the Matiari - Lahore HVDC Transmission Project in Pakistan and the DC interconnection project in the Philippines, have become local "power business cards." Only with high - quality products and high - standard performance can we win the market.

Second, take a long - term view. When "going out," we cannot only focus on short - term benefits but should maintain strategic determination and make in - depth efforts. In Egypt, Malaysia, Indonesia and other places, we promoted localized operations, combining Chinese technical standards with local power grid needs. This not only promoted local employment but also achieved mutual benefit and win - win results with the host countries.

Third, fulfill social responsibility. When Saudi Arabia was facing the most tense peak - power - consumption period last year, we completed the delivery of a high - voltage mobile substation project for the Saudi Electricity Company in only six months, ensuring the local residents' electricity consumption. "Small but beautiful" projects can often touch people's hearts. High standards ensure quality, sustainability builds trust, and only by truly benefiting people's livelihood can we win respect.

*Content source: International Financial News

This article is from the WeChat official account "Comprehensive Service Port for Zhejiang Enterprises Going Global," author: Zhejiang Enterprises Going Global.