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Writer's pictureDr Colin Lee

The 3rd wave of Chinese Enterprises going Global: Connection, Pilot and Integration

China Strategy: Going Overseas


The SAR government and the Cyberspace Administration of China signed the "Memorandum of Cooperation on Promoting Cross-border Data Flow in the Guangdong-Hong Kong-Macao: Greater Bay Area" and will discuss specific measures for cross-border data flow. The Trade Office of the Ministry of Economic Affairs of Hong Kong, the Chinese Enterprises Association of Hong Kong and the China Council for the Promotion of International Trade Representative Office in Hong Kong jointly compiled the "Hong Kong" link, using "Hong Kong" to go overseas - Hong Kong: the first choice platform for Chinese-funded enterprises to "go global" "booklet. This time, Chinese companies go overseas. This is not the first time after the reform and opening up: "Bring in, go out!"; nor is it the second time that Chinese companies have signed the "World Trade Treaty" and listed companies overseas to raise funds; rather, it is based on the current national economic needs, making every effort to bring new-generation industries such as culture, Internet consumption, new energy electric vehicles, and green building material manufacturing globally via digital solutions.

 

Bridges and pilot projects based on the advantages of "Globalization"


KeeTa, a brand of mainland food delivery giant Meituan, enters Hong Kong in May 2023, stating that it serves as the "first experimental point for overseas business" - this is in line with many researchers' speculations about Meituan's intention to come to Hong Kong: spending so much effort to compete for such a small market is more like an experiment.


Today's Hong Kong is still compared to the mainland. Internet companies can easily communicate with foreign users in local and overseas markets. Therefore, if you want to develop B2C (Business-to-Customer) business, you may wish to first understand the needs of the international market through Hong Kong, and then continue to optimize and adjust their infrastructure. Hong Kong is one of the most important data centers in the Asia-Pacific region. Almost all central cloud and hosting service providers in the world have set up offices in Hong Kong. It is also the main gateway for mainland data to go overseas.


 

"De-intermediation" status is used for small wins and big strategies to give full play to absolute advantages and integration


The current global digital economy has entered a development model dominated by platform enterprises. In the "One Belt One Road" strategy, Hong Kong plays an important role as "the largest offshore RMB exchange center". It is the mainland's external contact window under "One Country, Two Systems" and is also China's only international financial center.


Hong Kong is not a big market strategy, but companies with incubation "Hong Kong genes" (referring to companies founded in Hong Kong/early incubation/headquartered in Hong Kong, or the founders and co-founders are Hong Kong residents) are prominently listed. In terms of promoting international trade and creating a capital pool for cross-border trade payments, many Chinese companies still choose Hong Kong for the flow of trade funds.​


In the recovery stage after the epidemic, using the "Hong Kong" brand and playing the domestic brand, especially in children's education, further study, and medical care, we still have global advantages.


Source: "One line of "Hong Kong" connection, using "Hong Kong" to go overseas─Hong Kong: Chinese-funded enterprises "going out""



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