Internationalization of the Private Economy Moves into a "new era of navigation"
The internationalization of the private economy has entered a "new era of navigation." This shift marks a significant evolution in how private enterprises operate on a global scale, embracing new opportunities and challenges in an increasingly interconnected world. The landscape is transforming, with businesses adapting to innovative strategies to thrive in various markets.
TroibNews 
Editor's note: Tang Jie is a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Chinese Ministry of Commerce. The article reflects the author's opinions and not necessarily the views of CN.
Chinese private enterprises have emerged as a significant force in advancing the globalization of the country’s economy due to their flexibility and innovative spirit. Their journey from local to global markets epitomizes the integration of economic transformation and globalization in contemporary times.
As anti-globalization sentiments and a technological revolution intertwine, these enterprises encounter competitive pressures from established multinational corporations as well as new geopolitical challenges. They serve dual roles as pioneers in global expansion and as catalysts for technological advancement, industrial integration, and international collaboration. Their contributions have revitalized the global economy and highlighted the resilience of the Chinese economic landscape.
A central strength of private businesses lies in the basic productivity derived from nurturing local markets, which encompasses unique products, technologies, and business models, alongside invaluable experiences gained in what is known as a super economy and the largest market.
Given the current volatility of the global economic climate, private enterprises must demonstrate increased agility. Developing clear internationalization strategies, engaging in cross-border partnerships, and implementing outward-looking economic approaches are vital. These approaches might include determining export models, setting up overseas bases, or utilizing cross-border e-commerce to broaden their operational reach. In many respects, the rise of "micro-multinational corporations" facilitated by e-commerce platforms is reshaping globalization.
The advantages provided by industrial clusters are continuing to expand.
Regions like the Yangtze River Delta and Pearl River Delta offer distinct benefits for the globalization of certain private enterprises. For instance, companies specializing in injection molding in Ningbo have significantly reduced their mold development cycles through collaborative innovation within the industrial chain, translating this efficiency into global competitiveness. Through a collaborative model akin to an "ant army," the Wenzhou low-voltage electrical appliance cluster has successfully developed a distribution network that spans over 100 countries, showcasing a novel approach for small and medium-sized enterprises to enter international markets.
A paradigm shift in globalization strategies is evident in emerging industries.
The implementation of "reverse innovation" strategies holds particular importance. For example, BYD’s electric buses designed for the Norwegian market feature polar cold-proof technologies, which can also benefit the domestic northeastern market, thereby creating a beneficial feedback loop for technological advancements. DJI's agricultural drones have developed intelligent irrigation algorithms in Southeast Asia, which have evolved into a global precision agriculture solution. Additionally, several 3C electronics firms in Shenzhen have created a rapid 72-hour global response system, covering everything from product design to delivery to overseas warehouses via platforms like Amazon and Temu.
Transnational governance is undergoing a cognitive transformation.
Compliance management is evolving from a cost center into a competitive asset. A photovoltaic company, for instance, has established a dual-circulation data center in the EU to segregate compliance data between its R&D center in China and its manufacturing facility in Poland, allowing it to proactively adjust its supply chain in anticipation of upcoming carbon tariff regulations. Similarly, WuXi Biologics has developed a global quality traceability blockchain platform, converting compliance records for drug production into trust certificates beneficial for market entry in developed nations.
The globalization of Chinese private enterprises represents a creative amalgamation of market-oriented strengths cultivated through reform and opening up, combined with new production factors characteristic of the digital age.
The integrated innovation of "machine vision + six sigma management" achieved by FUYAO Glass at its Dayton plant, alongside NIO's establishment of a user community-driven R&D center in Berlin, further illustrates how these practices are redefining the global perception of "Made in China." When discussing critical elements for sustained growth—such as technological innovation, brand development, and localized operations—it is essential to acknowledge government policy support, including initiatives like the Belt and Road Initiative.
Future global competition will pivot not only on product and capital outputs but also on the worldwide transformation of business models and innovation ecosystems. In this evolving landscape, successfully navigating the balance between technological sovereignty and open collaboration, as well as developing cross-cultural organizational capabilities, will be crucial for private enterprises seeking sustainable global growth.
Sophie Wagner contributed to this report for TROIB News
Chinese private enterprises have emerged as a significant force in advancing the globalization of the country’s economy due to their flexibility and innovative spirit. Their journey from local to global markets epitomizes the integration of economic transformation and globalization in contemporary times.
As anti-globalization sentiments and a technological revolution intertwine, these enterprises encounter competitive pressures from established multinational corporations as well as new geopolitical challenges. They serve dual roles as pioneers in global expansion and as catalysts for technological advancement, industrial integration, and international collaboration. Their contributions have revitalized the global economy and highlighted the resilience of the Chinese economic landscape.
A central strength of private businesses lies in the basic productivity derived from nurturing local markets, which encompasses unique products, technologies, and business models, alongside invaluable experiences gained in what is known as a super economy and the largest market.
Given the current volatility of the global economic climate, private enterprises must demonstrate increased agility. Developing clear internationalization strategies, engaging in cross-border partnerships, and implementing outward-looking economic approaches are vital. These approaches might include determining export models, setting up overseas bases, or utilizing cross-border e-commerce to broaden their operational reach. In many respects, the rise of "micro-multinational corporations" facilitated by e-commerce platforms is reshaping globalization.
The advantages provided by industrial clusters are continuing to expand.
Regions like the Yangtze River Delta and Pearl River Delta offer distinct benefits for the globalization of certain private enterprises. For instance, companies specializing in injection molding in Ningbo have significantly reduced their mold development cycles through collaborative innovation within the industrial chain, translating this efficiency into global competitiveness. Through a collaborative model akin to an "ant army," the Wenzhou low-voltage electrical appliance cluster has successfully developed a distribution network that spans over 100 countries, showcasing a novel approach for small and medium-sized enterprises to enter international markets.
A paradigm shift in globalization strategies is evident in emerging industries.
The implementation of "reverse innovation" strategies holds particular importance. For example, BYD’s electric buses designed for the Norwegian market feature polar cold-proof technologies, which can also benefit the domestic northeastern market, thereby creating a beneficial feedback loop for technological advancements. DJI's agricultural drones have developed intelligent irrigation algorithms in Southeast Asia, which have evolved into a global precision agriculture solution. Additionally, several 3C electronics firms in Shenzhen have created a rapid 72-hour global response system, covering everything from product design to delivery to overseas warehouses via platforms like Amazon and Temu.
Transnational governance is undergoing a cognitive transformation.
Compliance management is evolving from a cost center into a competitive asset. A photovoltaic company, for instance, has established a dual-circulation data center in the EU to segregate compliance data between its R&D center in China and its manufacturing facility in Poland, allowing it to proactively adjust its supply chain in anticipation of upcoming carbon tariff regulations. Similarly, WuXi Biologics has developed a global quality traceability blockchain platform, converting compliance records for drug production into trust certificates beneficial for market entry in developed nations.
The globalization of Chinese private enterprises represents a creative amalgamation of market-oriented strengths cultivated through reform and opening up, combined with new production factors characteristic of the digital age.
The integrated innovation of "machine vision + six sigma management" achieved by FUYAO Glass at its Dayton plant, alongside NIO's establishment of a user community-driven R&D center in Berlin, further illustrates how these practices are redefining the global perception of "Made in China." When discussing critical elements for sustained growth—such as technological innovation, brand development, and localized operations—it is essential to acknowledge government policy support, including initiatives like the Belt and Road Initiative.
Future global competition will pivot not only on product and capital outputs but also on the worldwide transformation of business models and innovation ecosystems. In this evolving landscape, successfully navigating the balance between technological sovereignty and open collaboration, as well as developing cross-cultural organizational capabilities, will be crucial for private enterprises seeking sustainable global growth.
Sophie Wagner contributed to this report for TROIB News
