Many multinationals seem to be adopting an approach of ‘if you can’t beat them, join them’
IN RECENT years, politicians in Europe have pleaded with their companies to de-risk from China, citing the threat from over-dependence on the world’s second-largest economy. But for many European multinationals in China, the new catchphrase instead seems to be: “If you can’t beat ’em, join ’em.”
To escape the brutal competitive landscape in China, many Chinese companies are rapidly investing in overseas production. German firms, which have a long history of partnering with local companies in the Chinese market, are joining them and helping them go abroad.
In a recent study, AHK Greater China – the German chamber of commerce in China – found that 36 per cent of its members saw “Chinese firms going global” as their most relevant business opportunity. A full 68 per cent had already in some way engaged with Chinese companies investing overseas.
