CKGSB’s Dean and Professor of China Business and Globalization Xiang Bing spoke on Mexico’s role in the globalization of Chinese companies and what corporate China’s international expansion drive means for Mexico at the Mexico Business Summit on November 14 in Puebla, Mexico. Engagement between China and Mexico has significantly deepened in recent years as more Chinese companies explore investment opportunities in the region.
Dean Xiang stated that the private sector has produced two of the most valuable companies in China – Tencent (worth USD $243.6 billion) and Alibaba (worth USD $236.7 billion)—despite a strong presence of state-owned enterprises. Dean Xiang reminded the audience that, “While China is socialist in theory; in practice it is extremely capitalistic in many ways. China may even be considered as the most capitalistic country on the planet.”
China’s integration with the global economy means that the China market is perhaps the most important market in the world. China has become a platform for global corporations and a hot bed for testing new products, new designs, new processes and new ideas. While China is an important market for foreign corporations, Dean Xiang predicted that the global economy will become more “Chinalized” in the coming decades as more Chinese companies become international brands through outbound foreign direct investment, mergers and acquisitions, etc.
China became Mexico’s second largest trading partner after the United States in 2014 and both countries agreed to create a joint investment fund of USD $2.4 billion financed by the Chinese government and Mexico state-run institutions. This will see a major increase in Chinese investment in Mexico, which already accounts for 0.2 percent of total foreign investment in the country in 2015. Mexican President Enrique Peña Nieto stated this year during the G20 Summit in Hangzhou that his priority was to strengthen the Mexico-China relationship.
The Mexico Business Summit is one of Mexico’s most prestigious forums dedicated to discussing Mexico’s role in global economics, trade relationships and commercial opportunities. Mexican President Enrique Peña Nieto and Panamanian President Juan Carlos Varela Rodriguez were among the many delegates who spoke at this year’s event. Dean Xiang Bing spoke on a panel which included CEO of World Trade Consultants Group, Amapola Grijalva; Professor of International Affairs & Director of the China Policy Program at George Washington University, David Shambaugh; Economic and Trade Attaché at the Chinese Embassy in Mexico, Zou Chuan Ming; and moderated by President and CEO of Manatt Jones Global Strategies Michael Camuñez.
As Chinese companies continue to expand overseas, the international business community is trying to position itself to benefit. CKGSB’s courses are structured with a global perspective, to help executives looking to take advantage of the opportunities arising from China’s expansion. CKGSB helps develop their understanding of the business landscape and culture. With offices and campuses around the world, CKGSB offers a global network of faculty who are experts in their fields, C-suite level alumni and long-term partnerships with international companies. For more info on CKGSB courses, please visit here.