Enterprises need to answer three questions well when going global

On June 1st, the State Council's Regulations on Outward Investment were announced and will come into effect on July 1st, 2026. The implementation of new regulations has strengthened the institutional guarantee for cross-border investment by Chinese enterprises, and has once again made "going global" a hot topic in the capital market.

According to data released by the China Association of Listed Companies, about 70% of listed companies in the market disclosed their overseas revenue for 2025, totaling 1.238 trillion yuan, a year-on-year increase of 13.3%, accounting for 22.7% of total revenue, an increase of 2.2 percentage points from the previous year; Among them, 629 companies have overseas revenue shares exceeding 50%.

Despite the impressive overseas revenue performance of listed companies last year, I believe that in the complex and ever-changing global landscape, companies still need to maintain rational investment when going global. Before deciding to go global, companies need to carefully answer three key questions and be prepared to do so.

First question: Do you have the ability to 'go out to sea'?

The globalized market, where opportunities and risks coexist, tests the hard power and long-term operational capabilities of enterprises. Enterprises that truly possess the strength to "go global" need to take long-term development as the core orientation, rely on their own core technologies, high-quality products, and improve their industrial chain to build a strong competitive foundation, and deeply cultivate overseas markets. Therefore, enterprises need to base themselves on their own reality, scientifically plan the pace and scale of overseas layout, and avoid the business risks brought by blindly following the trend of "going global".

At the same time, whether a company can steadily "go global" and establish long-term roots depends on whether it can abandon the impetuous mentality of short-term arbitrage and making quick money. Some companies' 'going global' only focuses on short-term market dividends, lacking long-term planning, technical support, and operational capabilities, ultimately making it difficult to withstand market fluctuations, resulting in hasty completion of 'going global' projects. Based on hard core strength and steady operation, enterprises can steadily move forward in the complex global market.

Question 2: In what way do we "go out to sea"?

Currently, domestic enterprises have various forms of "going global", including product exports, local joint ventures, cross-border mergers and acquisitions, and franchising. The requirements for a company's financial strength, technological reserves, industrial chain resources, and operational capabilities vary greatly depending on different modes. The differentiation of enterprise size and resource endowment directly determines the different paths of their "going global". The key for enterprises to steadily expand overseas and achieve long-term operation lies in accurately focusing on their own advantages, calculating costs and benefits, and selecting the best layout.

For example, small and medium-sized enterprises with high-quality products but unable to afford the high localization costs of building overseas factories can prioritize the light asset strategy of "product export+local joint venture", relying on local partners to jointly operate and share profits; Science and technology innovation enterprises holding core patents and cutting-edge technologies can achieve technology monetization and market penetration through franchising and technology cooperation; Enterprises with full industry chain advantages and global operational capabilities can achieve global layout of the industry chain through capacity implementation and industry mergers and acquisitions.

Question 3: In what capacity do you "go out to sea"?

To truly integrate into overseas markets, Chinese companies need to change their identity, establish trust relationships and cooperation networks with local governments, communities, and partners, and adhere to the concept of "coexistence, symbiosis, and mutual benefit". This is not only an upgrade of capabilities, but also a key factor in determining the quality and efficiency of a company's overseas operations.

The new identity positioning requires enterprises to deeply embed themselves in the host country's industrial chain. For example, companies can integrate compliance research and development, local registration, and localized employment into top-level design by aligning with local laws, regulations, industrial policies, and financial environment in the early stages of project planning; At the same time, relying on local partners to connect government, enterprise, and community resource links, and exploring incremental market space through complementary industrial chains. This two-way empowerment cooperation model can help enterprises continuously accumulate local trust and build a "moat".

Based on the new stage of globalization, the competition of Chinese enterprises' "going global" has already transcended the product and price level and focused on the competition of long-term business thinking. Only by identifying a new positioning of collaborative symbiosis can Chinese enterprises take root and grow in the global market, achieving the long-term goal of "going out" and "going in" to deep "integration".