China Strategy:Dealing with De-Globalisation,Part II

The US election result is the largest expression yet of rising protectionism andpopulism around the globe. It adds further urgency to China corporates’ need tobuild multinational platforms. Rising trade barriers are one of the Six Drivers ofChina’s corporate internationalisation we identified in our China Strategy – Yearof the Eagle report. China’s continually rising share of global trade is making the“Made in China” label more difficult to sell. Only China’s best corporates –represented by our Eagle picks – are in a position to build multinational businessplatforms. Midea, Haier, Minth, Sany Heavy, Zijin Mining, Lenovo and TCLalready have multinational footprints, while we see promising signs that FuyaoGlass, Alibaba, Hengrui Pharm, Ctrip, Weichai Power, HongqiaoAluminium, Yutong Bus and Great Wall are following them.