Going global: The new blue ocean for Chinese enterprises
“Go global or be left behind” is no longer a slogan. For many Chinese enterprises, it has become a strategic imperative. Over the past two years, mainland companies have markedly accelerated their overseas expansion, signalling a shift to more deliberate, systematic globalisation.
This theme took centre stage at the Southern Forum of Finance and Economics 2025, a flagship Greater Bay Area (GBA) business event organised by Southern Finance Omnimedia Group in collaboration with 21st Century Business Herald. Professor Ma Xufei of CUHK Business School delivered a keynote address titled “Going Global: The New Blue Ocean for Chinese Enterprises”. Drawing on years of research, Professor Ma, chairman of the Department of Management, traced the historical evolution of Chinese firms’ global expansion, analysed their current features and outlined key strategic directions for the future.
Professor Ma noted that Chinese enterprises have now entered a new phase of “strategic globalisation”. He highlighted Hong Kong’s role in this transition: the city’s key geographic positioning, deep capital markets, supportive policy environment, and high-calibre talent base position Hong Kong as a vital launchpad for mainland companies seeking sustained international growth.
Professor Ma Xufei delivers an inspiring speech titled “Going Global: The New Blue Ocean for Chinese Enterprises”
Chinese enterprises enter “strategic globalisation” phase
Professor Ma outlined the global expansion of Chinese enterprises as a progression through three distinct stages. The first phase, spanning the 1980s to 2000, was described as “Opening and Observing the Sea”. This period focused on “bringing in”, with Chinese firms integrating into global supply chains primarily through processing trade and OEM manufacturing under the “three-plus-one” model.
The second phase, “Racing to the Sea”, extended from China’s accession to the World Trade Organization in 2001 to 2017. During this period, enterprises seized the opportunities of their first major wave of internationalisation, expanding rapidly through cross-border mergers and acquisitions to secure overseas markets and strategic resources. The era was defined by urgency, catch-up ambitions and aggressive expansion.
The third phase, “Strategic Globalisation”, emerged after 2017. The shift was driven by the cumulative effects of four decades of reform and opening up, critical reassessments following the 2008 global financial crisis, intensifying China-US trade frictions and the accelerating impact of emerging technologies such as artificial intelligence. Unlike earlier stages, enterprises in this phase have adopted a more measured and deliberate approach, emphasising “planning before action” while assuming a more proactive role in shaping their global engagement.
Professor Ma further identified three major transformations in overseas expansion models: a transition from asset-light to asset-heavy strategies; a shift from product exports to capacity exports; and a move away from individual overseas ventures toward supply chain-driven internationalisation.
Geographically, recent years have seen Chinese outbound investment increasingly concentrated in Belt and Road countries, Southeast Asia and the wider Asian region. By province of origin, Guangdong, Zhejiang and Shandong now lead as the top three sources of enterprises pursuing international expansion.
Policy support for the global expansion of Chinese enterprises continues to gather momentum. In October 2025, multiple government departments jointly issued the “Guiding Opinions on Further Improving the Overseas Comprehensive Service System”, reinforcing institutional support for companies venturing and operating abroad. That same month, Minister of Commerce Wang Wentao stated at a press conference that policymakers must “consider both GDP and GNI, valuing both ‘China’s economy’ and ‘the economy of Chinese people’”. His remarks provided important strategic guidance for enterprises pursuing international growth. In parallel, the draft 15th Five-Year Plan outlines more coordinated and systematic arrangements for foreign trade, two-way investment and high-quality Belt and Road cooperation. Professor Ma noted that these measures collectively offer clearer direction and stronger policy certainty for Chinese companies going forward.
Professor Ma speaks with media outlets during the forum
Harnessing Hong Kong’s unique advantages to “set sail together”
An increasing number of enterprises now view Hong Kong as their first stop when planning overseas expansion. Professor Ma observed that as early as a decade ago, many firms had begun establishing their overseas offices or headquarters in the city. By 2024, mainland direct investment into Hong Kong accounted for approximately 60% of China’s total annual outbound direct investment, underscoring Hong Kong’s central role in corporate globalisation strategies.
What accounts for this preference? Professor Ma pointed to three structural disadvantages commonly faced by Chinese companies entering international markets: the “liability of foreignness” as new entrants; the “latecomer disadvantage” relative to established foreign competitors; and the “liability of Chineseness”, reflecting heightened geopolitical sensibilities in the current landscape. Hong Kong helps mitigate these challenges by offering a comprehensive ecosystem for internationalisation. With strong policy alignment, mature financial and innovation systems, deep professional services and efficient one-stop support, the city continues to reinforce its position as both a “super-connector” and a “super value-adder” linking the Chinese mainland with worldwide markets.
Hong Kong’s appeal is further strengthened by its strategic positioning as “three centres and a hub” comprising international finance, trade and shipping centres, alongside a hub for high-calibre talent, all underpinned by the institutional advantages of “One Country, Two Systems”. In October 2025, the HKSAR Government established the “Task Force on Supporting Mainland Enterprises in Going Global (GoGlobal Task Force)”, creating a one-stop platform that delivers tailored support programmes and enables companies to use Hong Kong as a springboard into international markets.
The city’s competitive strengths are also reflected in its performance across leading global rankings in 2025. The World Intellectual Property Organisation’s Global Innovation Index 2025 ranked the Shenzhen-Hong Kong-Guangzhou innovation cluster first among the world’s top 100 clusters. Meanwhile, the World Digital Competitiveness Ranking 2025 placed Hong Kong third internationally in the technology category.
Talent remains another decisive advantage attracting mainland enterprises. Professor Ma encouraged companies to actively tap Hong Kong’s talent pool, noting: “CUHK Business School alone graduates more than a thousand high-performing students each year. After completing their intensive one-year master’s programmes, these graduates enter the market as highly competitive recruitment prospects.”
In his latest book, Going Global Strategy, Professor Ma introduced the GLOVIDICAL framework, which he describes as a “new blue ocean strategy for globalisation”. The framework integrates glocalisation, disruptive innovation and value innovation to guide enterprises navigating increasingly complex international markets.
Under this approach, globalising firms should leverage the Chinese mainland’s robust manufacturing base and supply chain capabilities while responding closely to local market preferences, delivering differentiated and personalised products and services. They are encouraged to pursue disruptive innovation in high-potential markets that competitors often overlook, and to apply value innovation principles by deliberately deciding which competitive factors to eliminate, reduce, raise or create.
Professor Ma concluded that Chinese enterprises must systematically learn and apply this new blue ocean strategy as they refine their global ambitions. By harnessing the city’s comprehensive advantages and “setting sail together with Hong Kong”, companies can advance their internationalisation efforts, collectively achieving the goals of “going out, going in and moving up”.