New rules of expansion: Chinese firms urged to ‘go local’ as they chase sales abroad
AI Summary
Facing declining domestic profits, Chinese companies are increasingly expanding internationally, prompting experienced firms to offer guidance. Industry leaders, like Gree Electric Appliances, advise prioritizing localization to overcome challenges abroad. This push is driven by weak domestic demand, overproduction, and trade uncertainties, supported by new government policies. Despite being a net capital exporter for a decade, Chinese firms encounter obstacles including labor criticisms, cultural differences, and geopolitical risks. Experts warn against creating isolated "enclaves" by importing entire Chinese teams, emphasizing the importance of integrating into local communities, as exemplified by Gree's minimal Chinese management in its Brazil factory.
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Source Transparency
This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).
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