Chinese Firms’ Overseas Expansion Faces Rising Policy and Operational Risks, Report Says
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Chinese firms looking abroad are navigating a more complex environment, as global macroeconomic instability and localized business risks combine to create a tough environment for expansion, according to a new report by Dun & Bradstreet Holdings Inc.
Released on Sept. 22, the report warns that Chinese companies venturing overseas are grappling with significant uncertainty. On one hand, volatile tariff structures and shifting investment policies are complicating strategic planning. On the other, firms are confronting granular risks such as opaque partner finances and erratic payment practices that are threatening cash flow and solvency.
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- Chinese firms face increased global risks, including volatile tariffs, payment delays, and rising bankruptcies as they expand abroad.
- Growth in overseas subsidiaries slowed, with 2,292 founded in H1 2025 (30% of 2024’s total); Hong Kong leads as a destination (47.8%).
- China’s exports rose 7.2% to 13 trillion yuan in H1 2025, but exports to the U.S. fell 9.6% due to tariff shifts.
- Dun & Bradstreet Holdings Inc.
- A recent report by Dun & Bradstreet Holdings Inc. highlights the increasing complexity for Chinese firms expanding globally due to macroeconomic instability and localized business risks. The report, released September 22, indicates that volatile tariffs, shifting investment policies, opaque partner finances, and erratic payment practices are threatening Chinese companies' cash flow and solvency. It emphasizes the need for stronger risk-management frameworks amidst rising payment defaults and bankruptcies in key export markets.
- 2021：
- Chinese mainland firms had established 7,653 overseas subsidiaries.
- 2023：
- The number of overseas subsidiaries established by Chinese mainland firms jumped to over 10,000, marking a peak in the expansion.
- 2024：
- The pace of overseas expansion by Chinese firms cooled after peaking in 2023.
- 2024：
- Nearly two-thirds of regions with available data reported an increase in corporate insolvencies; the U.S., Canada, France, Poland, and Sweden hit their highest insolvency levels since 2012. Singapore saw the sharpest insolvency increase at 40%.
- First half of 2025：
- Chinese companies founded 2,292 overseas subsidiaries, about 30% of the prior year’s total.
- By first half of 2025：
- China’s exports grew 7.2% year-on-year to 13 trillion yuan ($1.8 trillion).
- As of first half of 2025：
- Exports to the U.S. (China’s top market) fell 9.6% to 1.6 trillion yuan amid significant tariff changes.
- 2025：
- Revenue for large apparel and textile firms fell 1.9% and 1.4%, respectively.
- Sept. 22, 2025：
- Dun & Bradstreet Holdings Inc. released a report analyzing risks for Chinese companies going overseas.
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