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Firms bullish on beating global woes

By WANG XIN in Shanghai | China Daily | Updated: 2025-04-17 00:00
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Chinese companies are positive about seizing opportunities and navigating through uncertainties amid the ongoing tariff and trade tensions, driven by a diversified global business footprint and efficiencies brought on by the application of advanced technologies, experts and industry leaders said.

They made the remarks at a forum held by the Cheung Kong Graduate School of Business (CKGSB) in Shanghai on Monday.

Teng Bingsheng, a professor of strategic management and associate dean for strategic research at CKGSB, pointed out that the tariff and trade tensions may be the catalyst for restructuring global supply chains and reshaping the world trade landscape, already evolving over the past few years.

Free trade, globalization and multilateralism under the rules-based WTO system are facing challenges and undergoing big changes, with regional economic and trade cooperation expected to grow.

"The changing global trade landscape is likely to help bring some regional partners closer in cooperation, such as China and the European Union as well as China, Japan and South Korea. We have seen a remarkable increase in regional economic and trade agreements, and we expect such cooperation to further expand and get strengthened," said Teng.

He also pointed out that the ongoing trade tensions have not come about suddenly.

Compared with the tariff increases that took place during the first term of US President Donald Trump, Chinese companies are better prepared this time.

"Although the tariff and trade tensions will bring challenges to Chinese companies in the short term, especially in export sectors including traditional clothing, furniture and applications as well as emerging new energy vehicles, lithium-ion batteries and photovoltaics, Chinese companies hold irreplaceable positions and are becoming rather 'immune' to the tensions this time," said Teng.

He further explained that Chinese companies have been committed to improving their overall competitiveness and optimizing their global business layout in the past few years, which have emboldened them to face the current challenges. Particularly, in fields like advanced technology and AI, Chinese companies are doing even better than their US counterparts, and thus have more confidence.

Despite the increasing challenges and global uncertainties, industry experts and business leaders agree that the globalization of Chinese companies will not reverse, and they still see tremendous business opportunities in overseas markets.

Zhuo Fumin, chairman of V Star Capital and rotating president of the Shanghai Entrepreneur Association, noted that against the backdrop of global industrial restructuring, an international presence has become a "sure" strategy for Chinese companies to expand.

Emerging markets have an urgent demand for advanced technology, management experience and professional talent, which are the core competitive advantages of Chinese companies.

"For companies, uncertainty means new opportunities. It is part of business and a source of motivation. In such an uncertain era, the one certain thing for entrepreneurs to do for survival is to strengthen themselves and improve competitiveness. Also, in the age of AI, (operation) efficiency and digitalization have become increasingly critical for traditional industries to reduce cost and improve efficiency," said Zhang Qingyuan, chief executive officer of Kingsoft Office Software Inc, which has developed the WPS Office suite.

Looking to future overseas expansion amid uncertainties, Teng advised Chinese firms to highlight "diversity" in both business portfolio and global layout to better prevent risks — even within certain regions.

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