Singapore – September 17, 2026 -- Chinese companies are entering a third phase of globalization defined by exporting operating capabilities rather than just products, according to a joint report released by Cheung Kong Graduate School of Business (CKGSB) and IE University's China Observatory.
Report identifies 'capability export' as the new phase of Chinese globalization
Titled Chinese Companies' New Playbook for Going Global, the study finds firms are transferring technical standards, product development processes, supply-chain organization, service models, branding and business models abroad while adapting them to local conditions. The research is led by CKGSB Professor of Economics and Associate Dean Li Wei.
Two distinct expansion models emerge in the data
The report distinguishes between 'chain style globalization,' in which large companies move overseas together with suppliers and partners to extend entire industrial ecosystems, and 'swarm-style globalization,' where smaller firms expand rapidly in succession, leveraging China's industrial clusters, cross-border platforms, logistics networks and overseas warehouses.
Southeast Asia field research warns against treating overseas markets as extensions of China
Fieldwork conducted in Southeast Asia found that price, speed and scale advantages do not automatically convert into market success. Companies face fragmented demand, regulatory complexity, local-content requirements, incomplete supply chains and cultural differences that require direct navigation rather than assumption.
Localization becomes the deciding factor for long-term winners
Li Haitao, Dean and Dean's Distinguished Chair Professor of Finance at CKGSB, states that future market leaders will be companies that understand local politics, respect local rules, invest in local capabilities and build trust with local stakeholders.
Cross-border acquisitions hinge on 'boundary spanners'
Bin Ma, Professor and Academic Director of China Observatory at IE University, identifies experienced executives dispatched from acquiring companies to work inside newly acquired organizations as a frequently overlooked source of competitive advantage, describing them as critical links across organizational, cultural and institutional divides.
Knowledge transfer, not just capital, defines the new export model
José Félix Valdivieso, Chairman of China Observatory at IE University, notes that Chinese companies must increasingly export knowledge, entrepreneurial spirit, organizational capabilities and management systems alongside products and investment.
The shift creates new competitive pressure and partnership opportunities for multinationals and Southeast Asian businesses, as Chinese firms seek local expertise, talent and networks to build deeper roots in overseas markets.