Offshore manufacturing critical

Expert: More foreign companies urging Chinese energy firms to produce locally

Chinese energy firms should recalibrate their overseas strategies from mere product exports to establishing local production capacities to explore new avenues for growth amid ongoing trade tensions and geopolitical conflicts, an executive from Ernst & Young (China) told China Daily.

Alex Zhu, energy, infrastructure advisory and carbon neutrality leader of EY China, underscored the importance of strengthening and cultivating collaborative partnerships with local producers. For better cooperation, he also said companies should study policies and their measurable impacts in foreign markets. This understanding facilitates timely adjustments to their international development strategies and business models.

"The key is to expand value chains, share benefits and jointly mitigate risks with local enterprises. This strategic approach prioritizes sustainable market entry and expansion strategies over mere reliance on low-cost sales," he said.