How Chinese Companies Expand Globally Despite Headwinds

The phrase "chu hai" ("going overseas," in Chinese) has become a rallying cry for many Chinese companies in the past few years. Faced with the sluggish rebound of China's domestic consumer market following the COVID-19 pandemic, they have turned their sights to foreign markets in search of growth. Many Chinese business leaders are confident that their innovation capabilities can make them competitive in these markets, but unprecedented trade barriers and geopolitical tensions represent significant hurdles to their international ambitions. To understand these difficulties and the strategies Chinese business leaders are using to overcome them, we interviewed 40 such leaders engaged in international business from early 2023 through early 2024. We learned that by reconceiving their approach to the notion of place, Chinese businesses are finding new ways to tackle the challenges of internationalization.