China’s “go global” strategy is picking up pace. According to the Asia Society, the educational organisation, Chinese overseas direct investment could hit $2,000bn by 2020.
Yet for the country’s aspiring multinationals, pouring money overseas is no guarantee of international success. China surpassed Japan to become the world’s second-largest economy last year, but its inability to emulate its Asian competitors in producing world-famous brands such as Toyota and Samsung reflects fundamental weaknesses in its domestic business model.
Future economic growth in the country is tied to the fate of its big businesses. If these companies fail to have an impact in ultra-competitive western markets, then it is highly unlikely China will be able to sustain another 20 or 30 years of rapid growth.