Partnerships, not plants: Chinese companies rethink overseas expansion strategy

As Chinese companies accelerate their overseas expansion, industry leaders are urging a more partnership-driven approach rather than simply building factories abroad – a strategy they say could help ease growing concerns about excess capacity.As it pushes further into global markets, Zhejiang Geely Holding Group will prioritise partnerships over rapid capacity build-outs, vice-chairman Daniel Li Donghui said at the Asian Financial Forum (AFF) in Hong Kong on Tuesday.“We don’t think it’s the best idea to simply increase capacity in every country,” Li said, highlighting one of the key challenges facing Chinese carmakers as they expand overseas. “Actually, many countries, including European countries, may also face the challenge of overcapacity.”Li’s remarks come as Chinese companies increasingly look overseas for growth amid fierce competition at home and Beijing’s broader push to encourage firms to go global.Major carmakers, including Geely, have laid out aggressive international strategies backed by ambitious sales targets and heavy investment.Geely has set a goal of selling more than 6.5 million vehicles globally by 2030, spanning both passenger and commercial models – a 58 per cent increase from its projected 4.12 million units in 2025.