New rules of expansion: Chinese firms urged to ‘go local’ as they chase sales abroad

As dwindling domestic profits push more Chinese firms onto the global stage, industry titans – forerunners who know what such a shift entails – are offering crucial advice for navigating challenges abroad.“The most important thing is to become a local company,” said Zhu Lei, chief marketing officer for air conditioner giant Gree Electric Appliances, which was among the first Chinese companies to enter the Latin American market.The advice comes as Chinese firms are expected to ramp up their international push this year, bolstered by fresh policy support and seeking new growth avenues in the face of weak domestic demand, rising production capacity and persistent trade uncertainties.China became a net capital exporter a decade ago, but its global footprint continues to encounter headwinds. Beyond criticism over labour conditions, cultural frictions, and failures to meet environmental and regulatory benchmarks, Chinese enterprises also face a climate of rising geopolitical risks.Speaking in Beijing at a January 21 forum on smart manufacturing, Zhu warned of another pitfall for Chinese firms: their tendency to export insular enclaves. He explained how some firms bring entire domestic teams – even their own chefs – abroad, leaving them out of sync with host communities.Gree’s Brazil factory, for example, is run with just three Chinese managers overseeing technology, production and finance.