Why Go International Market? Reflections from Headline Companies

In 2015, we started our overseas exploration: we set up a regional operation center for IT services in Singapore, with the core idea of providing Southeast Asian one-stop services for European and American clients. With the advancement of our business, we have not only served dozens of European and American head customers, but also gradually improved the supply chain of local service resources in Asia-Pacific countries and established local delivery capabilities. Nowadays, "going to sea" has become a buzzword, and one cannot help but think: What is the motivation for enterprises to go to sea? What are the economic and developmental factors that are important for Chinese companies to focus on in their decision to go overseas?

Chinese companies going overseas (i.e., expanding overseas) has become a centerpiece of economic strategy in recent years, particularly in manufacturing, retail, and the Internet (e.g., e-commerce, social media, gaming, short-form video, cloud services, and payment platforms). Chinese internet giants such as Alibaba, Tencent, ByteDance (TikTok), Baidu, NetEase, and Weibo are aggressively pursuing global growth in response to saturated domestic markets, intense competition, and geopolitical pressures, according to the 2025 data. Their overseas targets are mainly focused on emerging markets and high-growth regions, with planning based on multiple factors such as market potential, cost advantages, policy support and risk aversion. In the following, we analyze the logic and strategic reasons for their choices, starting from the main target countries/regions.

1. Southeast Asia (Southeast Asia): the primary target, with the highest percentage

• Target countries: Indonesia, Thailand, Vietnam, Malaysia, Singapore, the Philippines, and so on. These countries are the preferred starting point for most Chinese Internet companies, and the size of Southeast Asia's digital economy is expected to reach $300 billion in 2025, with an annual growth rate of over 15%.
• Why it's planned:
  • Market growth potential: Southeast Asia's population of more than 670 million people is youthful (average age of 28 years old), Internet penetration has risen from 30% in 2014 to more than 75% in 2025, and the demand for digital consumption has exploded. Demand is strong in areas such as e-commerce, gaming and short videos, as Alibaba and Tencent are rapidly capturing the market through localized investments (e.g. Shopee and Tokopedia).
  • Geographic and cultural proximity: proximity to China and cultural similarities (e.g., large Chinese communities) facilitate localization. Low cost (labor, land) and benefit from the "China+1" supply chain diversification strategy to avoid the impact of the US-China trade war.
  • Policy and investment support: China's Belt and Road Initiative (BRI) and Digital Silk Road (DSR) initiatives have provided subsidies, loans, and infrastructure (e.g., data centers) that have attracted the likes of Alibaba, Tencent, and Huawei to build in the region. Chinese companies are investing more than $40 billion in Southeast Asia by 2025.
  • Examples: TikTok has more than 100 million users in Indonesia and Vietnam; Tencent Cloud and Alibaba Cloud are building data centers in Singapore and Malaysia to support local startups.

2. United States (US): High-value market, but faces challenges

• Target countries: US mainland, especially Silicon Valley and tech centers.
• Why plan for this:
  • Technology and innovation centers: the US is a global tech highland, and Chinese companies seek to gain access to advanced technologies, talent, and market share, e.g., through M&A or investment into AI, cloud services, and e-commerce. Despite trade tensions (e.g., tariffs and technology bans), high returns entice companies to stick around.
  • Global reach: entry into the U.S. boosts brand global recognition, but increased scrutiny from Trump policies in 2025 (e.g., against TikTok and Huawei) has led companies to shift to "micro-regional" strategies (e.g., virtual teams or partners).
  • Risk aversion: Domestic economic pressures (e.g., overcapacity) drive going overseas, but the U.S. is a "high-risk, high-reward" option, often mitigated by localization (e.g., TikTok's U.S. algorithmic independence).
  • Examples: ByteDance has more than 150 million TikTok users in the US; NetEase Games has significant market share in the US.

3. Europe: Mature market with focus on Central and Eastern Europe

• Targeted countries: Germany, France, the United Kingdom, Poland, Turkey, etc., with equal emphasis on Central and Eastern Europe and Western Europe.
• Why plan for this:
  • High-income consumers: Europe's market is mature and highly digitized, suitable for high-end products such as e-commerce and payments.2025, China's investment in Europe grows, benefiting from the EU's openness to green technology and innovation.
  • M&A and technology acquisition: acquiring intellectual property through acquisitions (e.g., German robotics company Kuka) and avoiding trade barriers. Although European regulation is tight, Central and Eastern Europe (e.g., Poland) is more welcoming to Chinese investment.
  • Diversification strategy: In the face of friction between China and the US, Europe is a "balanced" choice, providing stable growth.
  • Examples: Alibaba is expanding e-commerce in Germany and the UK; Tencent is investing in game studios in Europe.

4. Middle East (Middle East): Emerging Hotspots

• Targeted Countries: Saudi Arabia, UAE (Dubai), Turkey, Israel, etc.
• Why planning so:
  • Economic transformation and demand: Middle East oil countries turn to digitalization, market potential (e.g., Saudi Arabia Vision 2030), Chinese companies offer low-cost cloud services and e-commerce.
  • Geopolitical friendliness: Middle East is suspicious of US, Chinese companies benefit from "enemy of my enemy is my friend" logic and provide infrastructure support.
  • Return on investment: high GDP per capita and lagging digital infrastructure facilitates rapid penetration.
  • Examples: Alibaba building a data center in Dubai; Huawei expanding 5G in the Middle East.

5. Other Regions: Latin America (LATAM) and Africa

• Target Countries: Brazil, Mexico (Latin America); Nigeria, South Africa (Africa).
• Why plan so:
  • Emerging market opportunities: large populations, fast economic growth, less competition. Chinese companies are investing in infrastructure and exporting e-commerce and payment services through BRI.
  • Cost and diversification: avoid developed market barriers and offer low-cost services.
  • Examples: ByteDance promotes TikTok in Brazil; Tencent invests in gaming in Africa.

Overall Planning Logic

Chinese Internet companies' strategy for going overseas is to "start with the easy before the difficult": start from low-risk, high-growth regions such as Southeast Asia and gradually expand to Europe and the United States, and use mergers and acquisitions, joint ventures, and localization to avoid risks. The core drivers are domestic economic slowdown (~5% GDP growth by 2025), overcapacity, and innovation export (e.g., "Made in China 2025" extending to the digital space). Government policies (e.g. BRI) provide financial and technical support, but geopolitics (e.g. Trump tariffs) are forcing companies to move to "micro-regions" and emerging markets. Going forward, the share of Southeast Asia and the Middle East is expected to rise further, complemented by Latin America and Africa.

Author: Yamazumi ｜ Global IT Services Supply Chain Architect

20+ years of cross-border delivery experience, serving 100+ countries, 500+ overseas enterprises; leading the construction of "Demand Definition - Resource Orchestration - Compliance and Delivery" integrated platform, realizing the cost reduction and efficiency and delivery cycle shortening by 80%. Focusing on global new office IT construction, network maintenance, operation and maintenance support, and cross-border data compliance, we integrate standardization, automation, and compliance into the delivery process, and help enterprises turn global IT capabilities into growth momentum with minute response.

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