Companies expanding in emerging markets

Amid a profound restructuring of the global economic landscape, Chinese enterprises are accelerating expansion in emerging markets in the Middle East and Association of Southeast Asian Nations, shifting from exports to deeper localization and partnerships, executives and analysts said.

The economic weight of the Global South — represented by the BRICS economies — has been steadily rising, while that of the G7 economies has shown a clear downward trend. This shift is a defining feature of the ongoing global economic restructuring, and enterprises should adapt to this trend, said Huang Wentao, chief economist of China Securities.

"China is broadening its global partnerships by deepening economic ties and advancing high-level cooperation with a growing number of countries. Going forward, the nation will accelerate institutional opening-up, creating a strategic window of opportunity for Chinese enterprises to expand globally," Huang said at the 2026 Global Investor Conference and China-Saudi Arabia Cooperation Forum, co-hosted by China Securities and the Saudi Exchange in Beijing last week.

Speaking at the forum, Mohammed Al-Rumaih, CEO of the Saudi Exchange, said foreign direct investment from China into Saudi Arabia reached nearly $8.3 billion by the end of last year, up 28.8 percent year-on-year, reflecting the growing size and depth of bilateral economic ties.

Xu Yuejian, deputy general manager of SANY Renewable Energy's overseas marketing company, said the Chinese company's global business has grown rapidly under the Belt and Road Initiative, from being just a supplier of machinery to becoming a partner for technology and project investment in emerging economies like Saudi Arabia.

Li Xiang, general manager for the Middle East, Africa and Central Asia at Jinko Solar, a Chinese solar module manufacturer, said the company is accelerating efforts to localize its equipment production and workforce in Saudi Arabia.

"As our industrial chain expands, we need more skilled and adaptable talent," he said. "That is why we are investing in long-term localization, working hand in hand with local partners in Saudi Arabia to build stronger capabilities."

Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development have called for expanding two-way investment cooperation and guiding the overseas distribution of industrial and supply chains in a rational, orderly manner over the next five years.

Apart from the Middle East, ASEAN has also become one of the fastest-growing markets for Chinese companies' overseas investments.

In Thailand, for instance, China's outbound greenfield investment consecutively reached new highs from 2022 to 2023, focusing on industries such as automobile manufacturing, electronic components and rubber processing, according to a report released by the China Finance 40 Forum, a Chinese think tank, and Kasikornbank, a commercial lender in Thailand.

The report showed that Chinese manufacturing investment in ASEAN economies is becoming more specialized, with new energy vehicles, lithium batteries and photovoltaics, collectively known as the "new trio", emerging as major areas of expansion.

Contact the writers at zhoulanxv@chinadaily.com.cn