As dwindling domestic profits push Chinese firms onto the global stage, industry leaders like Gree Electric Appliances advise deep cultural integration to navigate overseas challenges. Chief marketing officer Zhu Lei stressed that becoming a local company is paramount. This comes amid expectations of a stronger international push supported by new policies.
At a January 21 forum on smart manufacturing in Beijing, Zhu Lei, chief marketing officer of air conditioner giant Gree Electric Appliances, offered advice on overseas expansion. He warned Chinese firms against exporting insular enclaves, such as bringing entire domestic teams—even personal chefs—abroad, which leaves them out of sync with host communities.
“The most important thing is to become a local company,” Zhu said. Gree was among the first Chinese companies to enter the Latin American market, and its Brazil factory is run with just three Chinese managers overseeing technology, production, and finance.
Chinese firms face weak domestic demand, rising production capacity, and persistent trade uncertainties, prompting a search for growth abroad. China became a net capital exporter a decade ago, but its global footprint encounters headwinds: criticism over labor conditions, cultural frictions, failures to meet environmental and regulatory benchmarks, and rising geopolitical risks.
This year, Chinese enterprises are expected to ramp up their international push, bolstered by fresh policy support. Keywords from the report include Brazil, Manaus, China National Building Material Group (CNBM), Ministry of Commerce, Egypt, the United States, and the Latin American market.
Industry forerunners like Gree stress the need for cultural integration, cautioning against directly transplanting domestic models overseas.