Chinese Companies Pivot From Exports to Localized Growth, Report Says

By Bao Yunhong

Chinese companies are undergoing a strategic sea change in their approach to globalization, pivoting from simple exports to embedding themselves in local markets through deeply rooted operations abroad, a new report from management consultancy Roland Berger says.

The Jan. 8 report describes a shift in demand — from merely “going out” to actively “taking root” — as firms recalibrate their international ambitions amid rising geopolitical tensions, trade frictions and domestic growth plateaus.

This new phase of internationalization marks a more mature stage in Chinese corporate expansion. While earlier ventures abroad were fueled by strong growth and early profit gains, firms now face more complex hurdles. These include scale limitations, regional compliance challenges and rising political risk, according to the consultancy.

Instead of chasing quick export wins, companies are aiming to build sustainable, long-term businesses abroad. That means striking a balance between the fast-paced, innovation-heavy style honed in China’s ultra-competitive market and the longer-term thinking demanded by foreign markets, where regulatory and cultural landscapes vary widely.

Zhou Mengqian, a partner at Roland Berger, said at a press event that Chinese companies need to develop organizational structures that both export domestic strengths—like talent, speed, supply chain control and cost advantages—and adapt them to regional demands.

Success, Zhou said, hinges on deploying global resources effectively. Rather than relying solely on China-based assets, firms are building manufacturing sites in low-cost countries, setting up R&D centers in tech hubs such as Europe and the U.S., and operating 24-hour business centers that can serve global clients across time zones.

Tailoring offerings to local tastes — while maintaining a few globally popular products that often generate over 60% of revenue — is another hallmark of the strategy. So is creating unified management systems to protect brand integrity and ensure consistent service quality.

This involves headquarters setting a global framework while empowering regional teams to adapt rules based on local laws and consumer expectations. Clear lines of authority and oversight mechanisms are essential, Zhou said, to strike the right balance between local agility and risk control.

The report concludes that Chinese multinationals are entering a phase of “capability globalization,” where long-term success will come not from first-mover advantages but from building flexible, globally integrated organizations that combine China’s domestic strengths with international resources.

Contact editor Han Wei (weihan@caixin.com)

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