Chinese firms are moving into a more mature stage of internationalisation, according to a new report released by CPA Australia, the Shanghai National Accounting Institute (SNAI) and Deloitte China.
The study, Chinese Enterprises Going Global: Navigating the Next Phase of Global Growth, finds 70% of surveyed enterprises already operate abroad, with 52% having more than two years’ overseas experience.
Around 67% of the respondents plan to enter new markets or strengthen positions in existing ones, indicating a shift towards more planned and systematic global expansion.
Asia is the main destination, chosen by 74% of respondents, with South-East Asia a particular focus due to market size, demographics and internet use. Europe (33%) and South America (26%) are also key target regions.
Business models are becoming more embedded locally.
Some 68% establish subsidiaries or branches to localise operations, 33% use joint ventures with local partners, and 22% expand through export agents or cross-border e-commerce.
This marks a move from basic overseas expansion to deeper integration into host markets.
Capability building is emerging as a priority as companies seek higher-quality growth.
The report highlights compliance and risk management, along with organisation and talent, as the most challenging areas.
Survey data show 68% lack comprehensive overseas risk management frameworks or rely on only basic controls, while 32% do not have unified oversight of overseas capital.
In addition, 40% depend on external agents for tax compliance and have limited understanding of local tax systems, and 59% still rely on manual processes or basic financial systems for overseas operations.
CPA Australia East and Central China Committee president and Deloitte China partner Collin Jin said: “Chinese enterprises face increasingly complex and region-specific compliance risks in their globalisation journey, including sanctions and export controls, data compliance, tax compliance, foreign capital and national security review.”
The report notes that companies are placing strong emphasis on specialist finance skills. The respondents prioritise international tax expertise (82%), financial risk management (66%) and international financial reporting standards (54%).
SNAI president Wenbin Lu said: “Against the backdrop of profound shifts in the global economic landscape and technological paradigms, finance professionals must evolve beyond traditional accounting roles to become strategic partners, resource integrators and stewards of global risk.”
“Chinese firms step up global expansion despite economic risks: report” was originally created and published by The Accountant, a GlobalData owned brand.