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South China Morning Post

Chinese companies can spearhead a new wave of globalisation

At a recent Singapore conference on Chinese companies going global , I spoke on deglobalisation and the emerging contours of Globalisation 3.0. Perhaps more than ever, we need to look ahead to new ideas and concepts to tackle whatever the future holds. Advertisement When China started its reform and opening up in 1978, its economy, shaped by autarkic experience and self-reliance, was still 'in China for China'. In tapping world-changing market forces, the economy entered a period of 'in China for the world' as the country was recast as the world's factory. Increasingly complex value-adding industries lifted 800 million out of poverty and boosted the material wealth of our modern world. By 2020, China accounted for 35 per cent of the world's gross industrial output. Yet trade wars – which started in the first Trump administration in the United States – have once again realigned global dynamics. In today's world, it's no longer enough to do it better and more cheaply. Globalisation is entering a new era. Multipolarity is back. 'De-risking' and instability have seen companies face a new period of uncertainty and transformation. With the rise of trade barriers, tariffs and geopolitical fragmentation, Globalisation 3.0 will increasingly be digitally driven and regionally oriented. Chinese businesses urgently need to adjust their strategies and accelerate the pace at which they go global. Advertisement This means shifting from an export-driven growth model towards one characterised by a global presence, overseas investments and cross-border industrial coordination. In other words, we need a strategy for the Chinese economy to be 'in the world, for the world'. Chinese companies must go global, distributing their value chains and production systems across countries to serve international customers.