With domestic profits narrowing and production capacity expanding, China’s firms are continuing to widen their overseas footprints in search of new, more lucrative markets. In this series, we examine China Inc.’s next phase of “going global” and the complex, challenging international environment its companies have chosen to enter.
A subtle shift is taking place among Chinese businesses as they adopt a “China plus one” outlook and redirect domestic investments to neighbouring economies – a strategy largely designed as a hedge against tariffs and geopolitical risks.
Vietnam, popular for much of this period, is beginning to lose some favour as firms look to Thailand as another alternative destination. The latter country has gained the edge on its competitor in the post-trade war 2.0 era, attracting billions of US dollars in outlays last year.
But the influx has also made Bangkok more mindful of risks, particularly those related to US measures intended to limit Chinese transshipment.