Senior executive calls for orderly Chinese expansion in Southeast Asian market

Chinese companies venturing into Southeast Asia, one of the hottest destinations for overseas expansion, should refrain from flooding the market with homogeneous products and services that would lead to vicious competition, a senior Chinese bank executive has urged.

Internationally competitive Chinese companies’ Southeast Asian operations in the green energy and infrastructure construction sectors had subjected local companies to a great deal of pressure, said Lin Jingzhen, Bank of China’s executive director and executive vice-president.

Lin made the comments at the annual meeting of the Financial Street Forum on Friday, warning about potential consequences from host countries.

“This is something we need to attach great attention to, as it will also seriously hinder the development of Chinese-funded enterprises in the area,” Lin said according to a copy of his speech obtained by the Post.

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Asean Conference 2024 highlights region’s progress towards a sustainable future

Facing an increasingly saturated domestic market and rising trade barriers from Western countries targeting “Made-in-China” products, launching operations and building factories overseas have become the only path to growth for many Chinese companies.