Hong Kong Trade Development Council (HKTDC) recently published a research study on Mainland companies’ overseas strategy changes when Belt and Road is now at its 10-year anniversary. The research focused on companies in the Canton Greater Bay Area and the Yangtze River Delta Region. The study found that, in the face of the slow recovery after the pandemic and the increasing business challenges in traditional overseas markets affected by geopolitical factors, many Mainland companies have adjusted their “going global” strategies. Around 83.9 percent of the companies surveyed said they are facing various challenges caused by geopolitical tensions, insufficient market demand, and financing difficulties, etc. Nearly 90 percent of the companies have plans to develop international business in the next one to three years. As many as 72.8 percent of the companies hope to explore business opportunities in RCEP and other Belt and Road emerging markets. They mainly plan to expand international business in four major areas: logistics and transportation (28.8 percent), marketing and sales (26.9 percent), investment and factory establishment (23.3 percent), and overseas procurement (15.9 percent). Successfully conducting international business requires extensive professional service support to assist them in planning and risk management. The study shows that the services most needed include: marketing and e-commerce (97 percent), financing and risk management (89.9 percent), product standards and ESG service support (89.2 percent), as well as tax planning and compliance (88 percent).
Source: HKTDC, September 5, 2023