Wu Chaoze highlights localization as key to global expansion at 2024 Land-Sea Economic Forum

At the 2024 Land-Sea Economic Forum, held at the Chongqing Yuelai International Convention Center, Wu Chaoze, chairman of the Expert Committee of CITIC Think Tank, director of the China Securities Research Institute, and head of the International Business Department, emphasized the importance of Chinese enterprises shifting their focus from exports to establishing a global presence.

Wu Chaoze delivered a keynote speech titled "From Exporting to Global Presence: Industry Demands in Key Global Market for 2024". [Photo/WCICO]

Wu stressed that this transition is not merely about addressing tariffs and production capacity, it is also a necessary step for Chinese companies looking to engage in global competition and achieve industrial upgrading. She outlined four key areas for Chinese enterprises to focus on: enhancing brand value, cultural export capabilities, global operations, and industrial upgrading.

In her keynote speech, Wu highlighted the significant potential of the Chinese automobile sector on the global stage. In 2023, China exported 4.91 million vehicles, up 57.9 percent year-on-year, making it the world's top auto exporter. The growth continued in the first quarter of 2024, with gasoline and new energy vehicle (NEV) exports reaching 1.01 million and 307 thousand units, respectively. Homegrown brands are seeing higher prices and gross profit margins thanks to increased productivity and global expansion.

According to data from China Securities and the China Passenger Car Association (CPCA), the top export destinations for Chinese automobiles in the first quarter of 2024 included Belgium, Brazil, the UK, Thailand, and the Philippines. Wu expressed optimism about the future of Chinese automakers globally, especially in the NEV sector, in which it held 62 percent of the global market share in the first quarter. The surge in lithium battery, NEV, and photovoltaic exports is driving this expansion.

Liangjiang New Area, a significant automobile manufacturing cluster, houses major brands like Changan Automobile, Seres, SAIC Hongyan, and Livan Auto. Changan Automobile has been particularly proactive in its global expansion efforts. In April 2023, the company launched the "Vast Ocean Plan", which aims to introduce at least 60 global products and establish more than 3,000 outlets worldwide by 2030, covering over 90 percent of the global market.

Changan Automobile received 3,073 orders at Bangkok International Motor Show this April. [Photo/Changan Automobile]

A critical milestone in Changan's international journey was the establishment of its Thai subsidiary in November 2023. This allowed Changan to commence sales in Thailand, and it announced an investment of 8.8 billion Thai baht to build an NEV manufacturing base in the country. At the Bangkok International Motor Show in April, Changan received 3,073 orders, ranking sixth in sales among all auto brands.

To bolster automakers' global efforts, Chongqing issued an action plan in December 2023, promoting an integrated export model that combines complete vehicle manufacturing, spare parts assembly, and localized operations. The more-than 200 upstream and downstream auto-supporting enterprises in Chongqing are the cornerstone of the automakers' global expansion.

To achieve a large presence globally, Wu emphasized the critical role of localization, recommending that enterprises tailor products to local market needs, implement localized quality control, establish robust local support systems, adapt marketing strategies to fit local cultures, and hire and train local talent to manage operations effectively.