GOING OUT

Since joining the WTO, China has successfully attracted enterprises in developed countries to relocate production and sourcing activities on a massive scale to the mainland. Also, a great number of emerging countries in Asia have liberalised their market, making use of their low-cost advantage to attract foreign investment to propel economic growth. These have in turn directly changed the landscape of global industrial production. More

The intense competition facing the global home appliance market has prompted Midea Group to speed up its transformation and upgrade process. The Group has strengthened its scientific research and innovation capability, while striving to expand its international sales network, and “going out” to set up overseas production bases. The ultimate aim of such a strategy is to promote the long-term development of its operation. More

Many enterprises on the mainland have been formulating their international business plans and further exploring market opportunities arising from the Belt and Road. But outbound investment should not just take into account labour and direct production costs, but also the overall costs like transportation, logistics and tariffs. Also, investment strategy should be mapped out according to market demand. More

Many companies on the mainland shift their manufacturing business to Southeast Asia to meet the challenges of rising production cost. Luen Thai Holdings Limited points out that in order to improve the overall efficiency, the companies have to consider a host of factors other than production cost, e.g., trade measures imposed by foreign countries, the supply chain in the relocation destinations, etc. More