In recent years, China’s private sector has experienced rapid growth, expanding its global footprint and becoming a vital driver of Chinese enterprises’ international development. According to the “2024 TOP50 Globalized Chinese Enterprises” ranking, private enterprises claimed seven of the top 10 spots and accounted for nearly 80% of the top 50. After decades of steady growth, Chinese private enterprises have not only played a key role in boosting foreign trade exports but have also made significant strides in overseas investment, cultural exports, and global brand building.

Key force of overseas development

Today, the private sector has accounted for half of China’s outbound trade and investment, with private enterprises serving as a key force of Chinese enterprises’ overseas development.

In terms of foreign trade exports, from 2012 to 2024, the import and export volume of Chinese private enterprises increased 11% annually, with its share of the country’s total import and export rising from around 30% to 50%. Since 2019, they have outpaced foreign-funded enterprises to become the largest foreign trade sector in China, holding this lead for six consecutive years.

In 2024, China’s total import and export of goods reached 43.85 trillion yuan, up 5.0% from 2023. Exports totaled 25.45 trillion yuan, up 7.1%, while imports stood at 18.39 trillion yuan, up 2.3%. Private enterprises recorded a total import-export volume of 24.33 trillion yuan, an 8.8% increase from 2023, accounting for 55.5% of the national total. Of this, exports reached 16.47 trillion yuan, up 9.4% and representing 64.7% of the total, while imports were 7.86 trillion yuan, making up 42.7%. Meanwhile, as the technological quality of private enterprises’ traded goods continued to improve, they constituted the largest import-export player in China’s high-tech products sector for the first time. Their trade in high-tech goods grew 12.6%, with products accounting for 48.5% of China’s total trade value in this category.

In terms of foreign direct investment, since 2013, private enterprises have emerged as essential agents in China’s expansion into global markets. In 2024, their non-financial direct investments totaled 1.02 trillion yuan, a year-on-year increase of 11.7%, with investments in Belt and Road Initiative partner countries totaling 239.9 billion yuan, up 6.5%.

Diverse models of going global

Chinese private enterprises are increasingly diversifying their approaches to going global, shifting from the export of products and production capacity to a stronger emphasis on brand-building. New industries, business formats, directions, and strategies are continually emerging. Strategic emerging industries and cutting-edge technologies such as artificial intelligence (AI) have become key focal points, while cross-border e-commerce is experiencing rapid growth. At the same time, the globalization of Chinese culture has emerged as a promising new avenue.

First, branding has become a distinctive model in private enterprises’ overseas development, with several pathways to brand globalization developed. One approach centers on continuous innovation in product performance, as seen in Chinese electronic products such as robotic sweepers, robotic mowers, and e-readers, whose expanding functionalities have generated strong brand recognition. Another strategy involves capitalizing on best-selling products to extend product lines and cultivate influential brands, particularly through e-commerce platforms. In addition, many Chinese household appliance brands have gained global prominence by coupling sustained technological research and development (R&D) with systematic brand-building efforts, thereby gradually reshaping international perceptions of “Made in China” products. Some enterprises have also succeeded by crafting distinctive brand cultures, exemplified by the rise of Chinese designer toy brands.

Second, high-tech industries have emerged as a new “blue ocean” for private enterprises to go overseas. Capitalizing on the global shift toward green, low-carbon development, these enterprises have intensified their investment in technological R&D across key green sectors, including new energy vehicles (NEVs), lithium-ion batteries, photovoltaic equipment, and wind power technologies, steadily increasing their global market share. Meanwhile, private firms engaged in the construction of new digital infrastructure—such as big data, artificial intelligence, and cloud computing—have also achieved notable progress. Looking ahead, the growing adoption of smart driving technologies and the accelerating overseas presence of Chinese NEVs suggest that intelligent driving is poised to become a key frontier in the international development of private AI companies.

Third, cross-border e-commerce and mobile applications have provided new impetus for private enterprises’ overseas growth. In 2024, China’s cross-border e-commerce trade volume reached 2.63 trillion yuan, marking a 10.8% year-on-year increase. The number of cross-border e-commerce businesses surpassed 120,000 at the start of the year, with private enterprises accounting for the majority. At the same time, Chinese apps are gaining traction in global markets. According to AppsFlyer data, downloads of Chinese apps abroad grew 11% in the first three quarters of 2024 compared to the same period in 2023, with non-game apps seeing a 19% surge, becoming a primary driver of overall growth. This trend reflects a shift from game-dominated exports to more diversified app offerings.

Fourth, the globalization of Chinese culture is likewise noteworthy. In recent years, the popularization of online literature, TV dramas, and games abroad has played a key role in promoting the dissemination of fine traditional Chinese culture. In particular, the 3A online game “Black Myth: Wukong,” unveiled in August 2024, stands out as a phenomenal success. Short online dramas also experienced explosive growth over the past two years. Currently, over 100 short drama apps are active in international markets, backed by more than 100 production companies focused on overseas audiences. Additionally, culturally rich art toys have achieved widespread acclaim abroad. It is also worth noting that amid this wave of cultural globalization, several emerging consumer brands—particularly in Chinese-style tea- and coffee-based beverages as well as Chinese cuisine—have accelerated their international development pace to strengthen their market presence and brand influence. In doing so, many of these enterprises have launched original intellectual properties infused with distinctive Chinese cultural elements, contributing actively to the global dissemination of China’s rich cultural heritage.

Li Yongjian is a research fellow from the National Academy of Economic Strategy at the Chinese Academy of Social Sciences.