In the superfast evolution of the 21st century, the dynamics of limited information, transportation, communication, and all the practical fundamentals changed from limited access to easy availability anywhere and anytime. If compared to the transformation of the last century, it might come as a surprise that humans have taken an unprecedented leap of advancement as compared to the thousands of previous years. Take the examples of the geopolitical restructuring of the last century and the compliance jurisdictions of global trade.
Adherence to the global trade-related legal and compliance-related rules enabled global businesses to secure billions of dollars selling products and services across the globe. Take the example of Unilever with a more than 120 billion USD market cap, Coca-Cola Co with a whopping market capital of 305.31 billion USD, and Netflix (295 billion). This is more than the GDPs of dozens of countries combined. To put things in perspective, the market cap of Coca-Cola is more than the defense spending of these four companies combined: India ($83.3B), Germany ($66.8B, France ($61.3B), and South Korea ($47.9B). This indicates the gigantic potential of going beyond the local market and using localization services.
Let’s discuss the global expansion of China (GDP $61.68 t), China-Japan bilateral relations, and the importance of translation services.
China-Japan Bilateral Trade Relations
The Chinese government has facilitated local and international business growth by decreasing the tariffs from 15.3% to 7.4%. In 2001, China was at the 26th place in terms of attracting direct foreign investment (FDI). In 2024, China stood in first place for attracting the most foreign direct investments from all over the world. The bilateral trade between China and Japan accumulated to 43.8 trillion Yen in 2022. Assistance from a professional Japanese translation agency facilitates mutual communication, legal compliance, and other legal and compliance-related documentation, etc. for Japanese companies that are operating in China.
- China hosts most Japanese companies
- Japan is the third largest investor in China, the second is Australia, and the first in the US
- In 2023, almost 2,425,000 Chinese tourists visited Japan
- China stood at number three in terms of most visiting nations to Japan.
Global Expansion of Chinese Companies and Role of Chinese Translation
It is important to note that localization is the most integral part of global expansion. In addition, the spirit of innovation, technological advancements, and cost-effectiveness are some of the drivers behind the success strategies of Chinese businesses.
Xiaomi Inc.
Headquartered in Beijing, Xiaomi is a Chinese electronics manufacturing company. Moreover, Xiaomi has acquired the services of a professional Chinese translation agency and spent a handsome amount on the translation and localization of its products.
- The electric wheels of the Xiaomi company have been sent to more than 59 countries.
- In total, Xiaomi has exported more than 200,000 electric vehicles all around the globe.
- The different products of the company have been delivered to more than 400 cities globally.
- The operation of the Chinese company has expanded to more than 70 countries.
- The electric car of Xiaomi (BYD Atto 3) has won the Best Electric Car of the United Kingdom (2023).
Haier
The Chinese company, Haier has built its local and then global presence as an industry leader in the home appliance industry. The localization strategies of Haier enabled the Chinese brand to deliver the appliances that were built for the specific requirements of the target country.
- Haier has delivered washing machines for specific Middle Eastern countries with extended washing capacity.
- Haier has introduced special drying machines for the consumers of the United Kingdom that can sterilize the cloth because of the humid weather of the UK.
Potential Challenges in the Global Expansion of Chinese Companies
Primarily, the Chinese economic model and companies were not built for the branding model of the US, UK, and Europe, to name a few. Over the past two decades, to compete with international competitors, Chinese companies have had to rebuild themselves, in terms of company-related content structure, marketing, and awareness. Below are the potential challenges of Chinese companies.
- Chinese companies were unfamiliar with the Western business culture and had to relearn the ways how to establish and navigate the professional facade with western counterparts.
- The enterprise sector of China is huge and it took a lot of convincing to make them realize the bigger picture and target global customers because the local consumer market of China itself was enough to fulfill the production of these Chinese enterprises.
Closing Note
After the Chinese inclusion in the World Trade Organization (WTO) in 2001 and adherence to the rules and regulations of the WTO, the Chinese economy gradually moved from the local small and medium enterprise (SME) model to international expansion. Moreover, during the past 23 years, the Chinese government has facilitated local and international business growth by decreasing the tariffs from 15.3% to 7.4%. In 2001. Consistent facilitation of the Chinese government and the facilitation of professional Chinese translation services contribute greatly to the emergence of China as a global trade leader.