<div id="readability-page-1">As Chinese companies accelerate their overseas expansion, industry leaders are urging a more partnership-driven approach rather than simply building factories abroad – a strategy they say could help ease growing concerns about excess capacity. As it pushes further into global markets, Zhejiang Geely Holding Group will prioritise partnerships over rapid capacity build-outs, vice-chairman Daniel Li Donghui said at the Asian Financial Forum (AFF) in Hong Kong on Tuesday. “We don’t think it’s the best idea to simply increase capacity in every country,” Li said, highlighting one of the key challenges facing Chinese carmakers as they expand overseas. “Actually, many countries, including European countries, may also face the challenge of overcapacity.” Li’s remarks come as Chinese companies increasingly look overseas for growth amid fierce competition at home and Beijing’s broader push to encourage firms to go global. Major carmakers, including Geely, have laid out aggressive international strategies backed by ambitious sales targets and heavy investment. Geely has set a goal of selling more than 6.5 million vehicles globally by 2030, spanning both passenger and commercial models – a 58 per cent increase from its projected 4.12 million units in 2025. Executives at the forum said Hong Kong has emerged as a key platform supporting this outward push, offering deep capital markets and access to global investors to fund overseas expansion.  As a company rooted in the Greater Bay Area, Xpeng, which is dual-listed in the US and Hong Kong, has benefited significantly from the city’s financial ecosystem, said Brian Gu, vice-chairman and co-president of the electric vehicle maker. “We’re very, very fortunate to be able to tap into the support that Hong Kong’s financial system has provided,” Gu said. Xpeng has pledged to fully commit to globalisation between 2026 and 2030, bringing its core products – including smart cars, robotaxis, robotics and low-altitude flying vehicles – to overseas markets, according to an interview this month with chairman and CEO He Xiaopeng. The company has already entered about 60 countries and regions and has established research and development centres in the US and Europe, with plans to expand into Southeast Asia. It has also been building local manufacturing and supply-chain capabilities, Gu said. Still, industry observers say the international push by Chinese firms is only just beginning. As the country shifts from high-speed growth to high-quality development, more mainland enterprises are actively expanding into overseas markets,” said Algernon Yau Ying-wah, Hong Kong’s Secretary for Commerce and Economic Development, speaking in October at the launch of a government task force. He pointed to growing interest in the Global South, Belt and Road Initiative countries and other emerging economies. The task force draws members from the business, legal, accounting and investment sectors to help mainland companies explore new overseas markets. Toby Xu, chief financial officer of Alibaba Group Holding, which owns the Post, said the city remained a critical hub for the group’s global strategy, particularly for fundraising and investor engagement. Hong Kong’s open-minded stock exchange and deep pool of professional services had enabled innovative financing solutions, Xu said, noting that Alibaba had raised about US$10 billion in the city over the past two years. “This market is very significant – very deep-pocketed and very innovative,” he said.</div>

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<p>Chinese companies are shifting their overseas expansion strategy from building factories to forming partnerships, as highlighted by Zhejiang Geely's vice-chairman at the Asian Financial Forum. This approach aims to address concerns about overcapacity in various markets. Geely plans to sell over 6.5 million vehicles globally by 2030, while Xpeng is committed to globalizing its products by 2030, leveraging Hong Kong's financial ecosystem for support. Industry experts note that the international push by Chinese firms is just beginning, with a focus on emerging markets and innovative financing solutions.</p>

- Chinese companies are shifting towards a partnership-driven approach for overseas expansion, as urged by industry leaders, to address excess capacity concerns.  
- Zhejiang Geely plans to strengthen partnerships while aiming for over 6.5 million vehicle sales globally by 2030, with significant international strategies in place.  
- Hong Kong is identified as a crucial platform for this expansion, offering access to global investors and financial resources, as companies like Xpeng commit to global growth efforts.

Partnerships, not plants: Chinese companies rethink overseas expansion strategy