Partnerships, not plants: Chinese companies rethink overseas expansion strategy

South China Morning PostCenter-RightEN 1 min read 100% complete by Cao Li,Themis QiJanuary 28, 2026 at 04:00 AM

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Chinese companies are being urged to prioritize partnerships over building factories abroad as they expand overseas, a strategy aimed at mitigating concerns about potential overcapacity. Zhejiang Geely Holding Group, for example, will focus on collaborations as it expands into global markets. This shift comes as Chinese firms, facing intense domestic competition, seek growth opportunities internationally, encouraged by Beijing's "go global" initiative. Major carmakers like Geely have announced ambitious international strategies with significant sales targets, such as Geely's goal to sell over 6.5 million vehicles globally by 2030. The partnership approach is seen as a more sustainable way to expand without exacerbating overcapacity issues in both China and international markets, including Europe.

Key Entities & Roles

Key Player Opposition Context

Beijing 30% Europe 40% Asian Financial Forum (AFF) 50% Hong Kong 60% China ×270% Daniel Li Donghui ×280% Zhejiang Geely Holding Group (Geely) ×490%

Keywords

overseas expansion 90% partnerships 80% chinese companies 80% overcapacity 70% capacity build-outs 70% geely 60% global markets 60% international strategies 50% sales targets 50% asian financial forum 40%