82% of Chinese firms eye overseas growth, with Hong Kong top service support choice More than 80 per cent of surveyed mainland Chinese companies plan to grow their overseas presence, with Hong Kong listed as their top choice for a professional services platform to support expansion, the Trade Development Council (TDC) has found. The council’s survey, published on Tuesday, also showed that about 94 per cent of respondents were eyeing countries in the Belt and Road Initiative for expansion. The initiative refers to Beijing’s ambitious global infrastructure and trade programme, which launched in 2013 and spans more than 150 countries. The council surveyed 2,015 mainland enterprises, with 82 per cent saying they planned to expand their existing overseas operations and 63 per cent looking to develop new overseas business. “Expanding overseas has become a compulsory option for mainland enterprises amid geopolitical tensions and rising costs [among other factors],” said Cherry Yeung Chui-lai, a senior economist with TDC. Interest in belt and road countries recorded a substantial uptick from the council’s 2023 survey, in which 73 per cent of polled mainland enterprises mentioned plans to expand into such markets. Asked why so many enterprises were interested in belt and road countries, TDC deputy director of research Chu Wing-chor said: “Many companies are very happy to be in line with the national strategy.” The survey also found that 91 per cent of respondents prioritised expanding their existing operations in Asean markets, particularly those in Singapore, Vietnam, Thailand and Malaysia. There was an increase in businesses planning to establish a presence in developed economies, with 48 per cent looking to Europe’s most advanced markets, up from 30 per cent in 2023, and 47 per cent eyeing the United States and Canada, compared with 45 per cent three years ago. The latest poll showed that 46 per cent of respondents were considering the Middle East, up from 33 per cent in 2023, while 34 per cent were eyeing Latin America, roughly double the figure recorded in the earlier poll. Chu noted that enterprises were increasingly considering emerging markets, even as they continued to do business in advanced economies, reflecting a more diversified approach to strengthen their international operations. The poll asked respondents about their top concerns, with mainland businesses citing intensified competition from other regions, followed by geopolitical tensions and rising costs back home. The polled businesses also said that uncertainties arising from the US trade policy had affected their operations. The survey found that different types of companies faced different challenges when going overseas. About 65 per cent of manufacturers cited rising mainland labour, production and transportation costs, while the same proportion of service industry enterprises were more concerned about intensifying market competition from other regions. Chu said most enterprises planned to develop two to three overseas business functions, indicating their intention to expand across different stages of the global industrial and business value chain. He added that the various challenges of overseas expansion underscored a growing need for professional services support. The survey found that 83 per cent of respondents saw Hong Kong as their first choice for a services platform to address these issues. The enterprises expressed an interest in services such as marketing, legal and accounting advisory, financing, risk management and supply chain management, among others. “As the first-choice professional services hub for the majority of the surveyed enterprises, Hong Kong’s unique connectivity and unrivalled expertise have ensured it is playing an ever more significant role in helping mainland businesses seize global opportunities,” TDC director of research Bruce Pang Ming said. Hong Kong is set to host the 11th Belt and Road Summit on September 9 and 10. The event will feature a “Go Global Chapter”, which will focus on overseas expansion opportunities and the city’s strengths in professional services. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3364463/82-chinese-firms-eye-overseas-growth-hong-kong-top-service-support-choice (ICE HONG KONG)

Fonte notizia: South China Morning Post