Global enterprises will continue to have major opportunities in China’s development over the coming decades—if they can successfully calibrate their global strategies based on an understanding of the opportunities and challenges facing China under the “New Normal,” according to Global Enterprises in China, a new report from the Chinese Academy of International Trade & Economic Cooperation of the Ministry of Commerce and Burson-Marsteller

Key industries such as manufacturing, energy and construction as well as others including information and communications technology industries have formed the foundation of China’s economic take-off and sustained the country’s export-oriented economy and the report predicts global enterprises in these industries will continue to play a critical role in China’s next phase of development.

“We have been working with multinational companies in China for over 30 years now,” said Daisy King, president of Burson-Marsteller China. “This has allowed us to observe firsthand how many have successfully evolved into truly global firms, in part by adapting to China’s rapidly evolving business context and development agenda. We see clear parallels for the approaches that Chinese companies need to take when they go global. In essence it is about being relevant and adding value at a local level—within the context of globally integrated strategy.”

The report puts forward five key considerations for success as Chinese companies go global and seek to navigate effectively across a global landscape that is growing in complexity:

  • Understand and align with local stakeholders
  • Innovate and integrate globally
  • Adopt a long-term view of building intangible assets
  • Adopt a global perspective
  • Develop strong culture and human resource systems

 “Going global is not simply a matter of investing in projects overseas or in setting up foreign operations,” says Xu Yingming of CAITEC. “As Chinese firms look to enter the global market, global enterprises can serve as important role models and partners.”