In the context of profound changes in the global economy and adjustments in the industrial chain, the road to globalization for Chinese enterprises is full of opportunities and challenges. How to accurately layout overseas markets, avoid potential risks, and seize the dividends of emerging markets has become a key proposition for countless entrepreneurs.
To this end, the China Merchants Overseas Industry Service Alliance, in collaboration with Wu Xiaobo Channel, successfully hosted the ‘China Merchants Overseas Business Practices’ on December 29 and 30, 2024. The event provided comprehensive guidance for entrepreneurs and executives, from strategic layout to practical approaches. The event not only analyzed the vast opportunities in the Southeast Asian market, but also injected confidence and strength for enterprises to gain insights into the future through the ‘Wu Xiaobo Year-End Show’.
Wu Xiaobo’s Year-End Show: Opportunities for Globalization and Empowerment
In Wu Xiaobo’s year-end show, he repeatedly mentioned a keyword – ‘going global’, which appeared 49 times, emphasizing that the ‘born global’ trend of going global is one of the two most important ‘once-in-a-century opportunities’ faced by contemporary Chinese entrepreneurs.
Five new characteristics of Chinese enterprises going global
In the year-end show, Wu Xiaobo made an in-depth analysis of the globalization trend. He pointed out that from 2004 to 2024, China’s outward foreign direct investment (OFDI) increased 35 times, and the growth rate in the past decade was as high as 81%. The number of A-share listed companies setting up factories overseas has also grown steadily, demonstrating the strong internationalization capabilities and potential of Chinese enterprises. Wu Xiaobo summarized the five new characteristics of Chinese enterprises going global:
1. From capacity relocation to market development: For example, GoldenHome not only builds factories overseas but also promotes ‘smart manufacturing’ and ‘customized services’ in the Chinese home industry to create global home solutions.
2. From factory construction to industrial park development: Overseas industrial parks are large in scale and complete in supporting facilities, which attracts many enterprises to settle in and forms an industrial agglomeration effect.
3. From one-way output of production capacity to the overall linkage of the supply chain: For example, the LIFT supply chain service model of China Development Bank Group provides a one-stop solution for overseas enterprises and enhances their ability to collaborate.
4. From individual competition to coordinated operations between enterprises and governments: for example, the Shaoxing Ke Bridge Enterprise in the Egyptian cotton planting project is backed by a comprehensive service platform built by the government to provide full support.
5. From manufacturing capacity output to business model globalization and innovation: with the advantages of China’s supply chain, combined with global IP cooperation, Chinese culture and high-quality products are passed on to global consumers.
Three Principles of Going Global
However, the road to globalization is not always smooth sailing. Wu Xiaobo, drawing on the experience of Japanese companies going global, summarized the challenges that Chinese companies may face and proposed three principles for going global:
Rationality: Stay calm and develop a reasonable strategy.
Constructive principle: Create value for the local area and actively solve problems.
Risk avoidance principle: Prevent risks in advance to ensure steady progress.
Therefore, the China Merchants Overseas Industry Service Alliance was born, taking the lead in construction and development, uniting all parties to build a solid platform for resource sharing, cooperation and exchange for overseas enterprises, and empowering enterprises to ride the wind and break through the waves to win the global market.
Chen Rizhong, Chairman of Wanxinda Group: Why Indonesia?
If Wu Xiaobo’s year-end show provides entrepreneurs with a macro global perspective, then Chairman Chen Hsu-ling’s sharing starts from practice and provides entrepreneurs with a specific operational path for empowerment. As a special guest instructor of the ‘Going Global Practical Course for Chinese Enterprises’, Chairman Chen Rizhun analyzed in detail the opportunities for Indonesian enterprises to go global, providing entrepreneurs with specific investment references.
Indonesia’s four ‘great nation genes’
He pointed out that the four genes that a great country must have are: large land area, rich resources, large population, and independent foreign policy. Indonesia is a typical example of a country that meets these conditions and has great influence in the Southeast Asian region. From the international perspective, the United States has important resource interests in Indonesia, involving free ports, oil and gas, copper mines and other important areas. Therefore, it is unlikely that the United States will easily impose sanctions on Indonesia in the next five years. Domestically, Indonesia’s political stability, good social security, and economy under the high control of the Chinese community make it an ideal destination for Chinese enterprises to expand overseas.
Indonesia’s ‘demographic dividend’ and consumption potential
Indonesia has a population of 284 million, and is growing at a rate of 6 million per year. The median age of the population is only 29 years old, which means it has a strong advantage in terms of a young and energetic workforce. Compared with other Southeast Asian countries, Indonesia also has relatively low labor costs. The per capita wage in Indonesia is only about 1,000 yuan, while the wage level in Vietnam, Cambodia and other countries is 3,500-4,000 yuan and 2,500 yuan respectively. More importantly, Indonesian workers are more disciplined, influenced by religious beliefs, and have simple living habits, which makes them easier to manage.
Advantages of establishing a factory in Indonesia
Chairman Chen Hsu-Ching also mentioned that Indonesia is a country with a highly vibrant market. The country has no typhoons, the annual temperature remains at 20-30 ℃, and the natural conditions are superior. Indonesians’ carefree lifestyle makes them keen on consumption. With the per capita GDP growing from US$4,000 20 years ago to US$12,000 today, Indonesia is in a golden opportunity of high consumption.
Steadfastly moving forward towards the future
“Do what you can, and stop when you can.”Every company needs to find its own positioning and direction when going global, and action is the only answer. From Wu Xiaobo’s ten-year ideological farewell to Chairman Chen Rizhong’s practical guidance, the ‘Chinese Business Going Global’ seminar successfully built a bridge to the global market for entrepreneurs in two days.
In the future, we look forward to more Chinese enterprises rising on the global stage and ushering in an era of internationalization for Chinese enterprises!
China-Indonesia Dual Park · Batang Industrial Park: Empowering Businesses
The China-Indonesia Dual Park, Bantang Industrial Park, is a core strategic project of Wiskind Group. It is located in the Kendari Industrial Park (KITB) in Sanbahual, Central Java Province, Indonesia. It is an important part of the Belt and Road Initiative, aiming to promote in-depth cooperation between China and Indonesia in economic, technological and other fields, and inject new impetus into regional economic development. Wiskind Group will continue to uphold the concept of openness and cooperation, and strive to promote technological innovation and the deepening of internationalization strategies, so as to achieve a higher level of global cooperation. Through key projects such as the Batang Industrial Park, Wiskind Group actively promotes global economic development and the realization of sustainable development goals, strives to provide more opportunities for global partners to jointly meet future challenges.
