2025 Deep Dive Report on Trade Policies for Chinese Enterprises Going Global: Status, Drivers, Challenges, and Recommendations

1. Current Status

The current global trade policy landscape is complex and volatile. Since 2024, major economies such as the US, EU, and India have adjusted tariff policies and technology control measures. The US has expanded tariffs on Chinese products to cover electric vehicles and semiconductors, while the EU has introduced the Carbon Border Adjustment Mechanism (CBAM) and tightened investment screening. At the same time, regional free trade agreements (e.g., RCEP, CPTPP) continue to deepen, exposing Chinese enterprises to differentiated rules. According to WTO data, the number of global trade restrictive measures increased by 12% year-on-year in 2024, with measures targeting Chinese firms accounting for an estimated 35%.

2. Drivers

1. Market expansion demand: Intense domestic competition drives companies to seek growth overseas, with emerging markets like Southeast Asia and the Middle East being top choices.
2. Supply chain diversification: To mitigate geopolitical risks, firms accelerate the "China+1" strategy by setting up factories in Mexico, Vietnam, etc.
3. Policy incentives: China's Belt and Road Initiative and overseas industrial parks provide support, while some host countries offer tax breaks.

3. Major Challenges

• Tariff and non-tariff barriers: US average tariff rate on Chinese goods rises to about 19.3%; EU imposes countervailing duties on EVs (17%-36%).
• Technology controls and export restrictions: US export controls on advanced chips and AI technologies hinder tech firms' overseas expansion.
• Rising compliance costs: Data privacy (e.g., GDPR) and environmental regulations (e.g., CBAM) require substantial investments.
• Geopolitical uncertainty: Events like US-China rivalry and Russia-Ukraine conflict increase risks of abrupt policy shifts.

4. Recommendations

1. Establish systematic compliance systems: Set up overseas legal and compliance teams to monitor policy changes and assess risks early.
2. Deepen regional cooperation: Actively leverage RCEP and China-ASEAN FTAs to reduce tariff costs, and explore joining CPTPP.
3. Localize operations: Establish R&D centers and production bases overseas to integrate into local supply chains and reduce policy vulnerability.
4. Diversify market presence: Spread investments across Europe, Southeast Asia, and Latin America to avoid over-reliance on any single market.
5. Strengthen government-business dialogue: Engage with host governments through industry associations and chambers of commerce to seek fair treatment.