Local Resources, Policies, and Supply Chains Key to Chinese Firms Going Global | Insights

Chongqing—On May 23, during the 7th Western China International Fair for Investment and Trade (WCIFIT), Zhang Chunli, general manager of InCorp International's Western China Market Division, shared insights on the region’s global strategy—highlighting both challenges and breakthroughs shaping western China’s international positioning.

Over 1,300 enterprises from 39 countries and regions gathered in Chongqing on May 22 for the 7th WCIFIT, showcasing the latest in trade and innovation.

"Many companies in western China haven't gone global yet- they want to, but they don't know how," Zhang said in an exclusive interview with Bridging News. Her recommendation is to leverage Hong Kong's network of trade shows. Each year, the Hong Kong Trade Development Council (HKTDC) hosts over a hundred exhibitions, spanning sectors like food, wine, and agriculture, giving companies early access to global markets.

Famed Chinese wine brands like Luzhou Laojiao and Moutai have made their mark at these events. "We discovered French distributors were sourcing wine from Ningxia Hui Autonomous Region and selling it back into China," Zhang added, highlighting the disruptive edge Chinese manufacturing has carved into global supply chains.

Hong Kong remains Chongqing's top source of foreign capital. In 2024, trade between the two surged to 57.53 billion yuan (about 8 billion U.S. dollars). Nineteen Chongqing companies are now listed in Hong Kong, with a combined USD 2.79 billion in bonds issued. Seven new Chongqing-Hong Kong cooperation deals were signed at this year's Fair, ranging from IPO consulting to green finance.

However, going global is not just about expanding a brand; it's about making strategic decisions. Zhang cited a leading bedding manufacturer that initially targeted Vietnam for expansion but ultimately shifted to Thailand. 

The decision was driven by Vietnam's foreign ownership restrictions and Thailand's more favorable incentives, such as access to local latex supplies and up to nine years of tax exemptions through the BOI (Board of Investment) program. Zhang emphasized that "Understanding tax policy, local resources, and rules of origin is essential. "

She also pointed to Hong Kong's strategic financial flexibility. Chinese mainland companies face a 25% corporate tax, but by operating through Hong Kong entities, exporters can cut that rate to as low as 8.25%. "For SMEs operating on thin margins, that's the difference between profit and loss," Zhang said. Fast payment settlements and more than 50 tax treaties further sweeten the deal.

In addition to traditional trade, cross-border e-commerce has become a key growth driver for global expansion. This year's Fair featured major platforms like Alibaba International, eBay, Shopee, and Whalet. The launch of the Chongqing Cross-border E-commerce Association last year has further fueled the region's e-commerce opportunities.

Zhang described a jewelry business that used short video platforms to rack up over 10 million yuan in sales within a few months. With backend support from data analytics firms, even first-time exporters can find traction.

Chongqing offers distinct advantages, with its robust industrial chain and connectivity through the China-Europe Railway Express and the New International Land-Sea Trade Corridor, making it a key hub for outbound trade. EV makers like SERES are expanding into Southeast Asia and the Middle East, further enhancing the city's global influence.

Furthermore, cultural exports are joining the charge. Hotpot chains Chaotianmen, Mixue Ice Cream & Tea, and ChaPanda are now operating in Southeast Asia and beyond. Even Chongqing's time-honored brand, Jiuyuan Steamed Stuffed Bun, is prepping for international markets. Zhang believes western China's time-honored brands have the power to ignite global curiosity.

"We're seeing growing confidence in Chinese manufacturing," Zhang said. "When your product becomes irreplaceable, you own the market."