A recent joint report released by MIT Technology Review, DeepTech, and LinkedIn China has unveiled the significant impact of Chinese companies on the global business landscape. This influence is driven by a strategic focus on leveraging technology as a key driving force in the internationalization of businesses across various sectors.
The report, unveiled at the inaugural China International Supply Chain Expo in Beijing, highlights the current trend of Chinese companies experiencing a surge in globalization through industrial upgrades and technology-driven strategies. Unlike the initial phase of globalization, which primarily focused on commodity trade, the current phase is marked by the use of technology dividends, engineering expertise, and resilient supply chains.
Nancy Wang, the Country Manager for China at LinkedIn, observed that Chinese companies have transitioned from internationalizing trade and capital to internationalizing capabilities. This shift has been made possible by their digital capabilities, strong supply chains, and engineering expertise, which have garnered global recognition.
The report also cites key sectors such as smart hardware, industrial robotics, healthcare, and new energy as representing the new face of Chinese companies’ globalization. This transformation is supported by data from the Ministry of Commerce, which indicates a 17.3 percent year-on-year surge in China’s non-financial outbound direct investment in the first 10 months of 2023, totaling 736.2 billion yuan ($103.17 billion).
Furthermore, LinkedIn’s findings have shown that Chinese companies are placing emphasis on global talent development in fields such as AI, digital skills, ESG (environmental, social, and governance), decarbonization, and sustainability. Wang emphasized the need for these companies to harness new technologies in addressing challenges related to global supply chain management, talent recruitment and training, and international brand building.
The impact of Chinese companies on global business through technology advancements is evident and continues to shape the international business landscape. With a focus on technological innovation and strategic global engagement, Chinese companies are positioning themselves as key players in the ongoing process of internationalization.
This report serves as a timely reminder of the growing impact of Chinese businesses on the global stage and the imperative for companies to adapt to the evolving technological landscape to remain competitive in the international marketplace. As China continues to drive global business transformation through technology, the world is set to witness an even greater shift in the dynamics of international trade and business.
