Shifting Focus: Chinese Firms Expand into the Global South

The attractiveness of China as a market is decreasing due to a slowing economy and rising competition, leading to challenges in maintaining profitable operations. Consequently, Chinese firms are increasingly looking toward the global south for growth opportunities, significantly expanding their sales to these regions. Since 2016, listed Chinese companies have quadrupled their sales in the global south, far outpacing the growth of Western firms in these markets. Despite this shift, rich countries still comprise the majority of global consumption; however, they are viewed as increasingly hostile environments for Chinese companies. The recognition of the global south as a burgeoning market, characterized by rapidly growing economies and expanding populations, is driving this strategic shift.