China’s growing importance on the world stage can partly be attributed to its decade-old “go global” policy. The country’s outbound investment last year, for example, soared to $102.9 billion, an increase of 14.1 percent from the previous year. “Judging from the current speed, China will soon become a net outbound investor,” China’s Vice Commerce Minister, Zhong Shan, was quoted as saying by the BRICS Post earlier this year.
Here are a few examples of Chinese companies making headway in global expansion in recent months:
Ctrip.com, China’s biggest travel website, recently acquired a majority stake in TravelFusion, a London-based air ticket and hotel booking website. In the past, the company has invested heavily in Hong Kong and Taiwan, but founder James Liang Jianzhang said that he will start investing only in foreign companies to accelerate the company’s global expansion.
Dalian Wanda Group, China’s largest property developer, has recently acquired Swiss Sports marketing firm Infront Sports & Media. The purchase came a few weeks after the company announced a major investment in Spanish soccer champion, Atletico Madrid. Wanda, which also owns AMC Entertainment, said it plans to acquire more overseas companies this year to deepen its push into sports and entertainment.
Xiaomi, the world’s third biggest smartphone maker, currently sells its devices in Asia, but the company said it plans to break into the US market in the next few months. Global Vice President Hugo Barra said a US version of Xiaomi’s online shopping site is in the works, but it will not be selling its main products. The new site will instead be selling accessories such as headphones, fitness band and power banks. In late December 2014, the four-year-old company raised $1.1 billion in funding, making it one of the world’s most valuable startup.
China’s largest privately owned conglomerate, Fosun International, Ltd., recently acquired US-based Meadowbrook Insurance Group for about $433 million. Since 2010, the Shanghai-based company has spent billions of dollars buying up foreign firms including a Hollywood movie studio, a Portuguese insurer, and a New York tower. In the near future, CEO Liang Xinjun told FinanceAsia that the company is eyeing one or two more acquisitions in Japan and Europe.
We wish these companies all the best in 2015 as they embark on their international expansion. Here at CSOFT International, we understand that setting foot in new territories can be intimidating and thrilling at the same time, but with the help of your trusted localization partner, you can avoid common pitfalls that companies often encounter when crossing borders.