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Caution urged on global growth

By Wang Bo (China Daily)
Updated: 2008-10-09 09:16

Chinese companies should secure their position in the domestic market first and be prudent in overseas expansion, Charles-Edouard Bouee, president and managing partner of Roland Berger Strategy Consultants Greater China, said yesterday.

"Although there is a chance for the Chinese companies going global when some companies overseas are weak and available at present, it might not be the right time as they are not well prepared for the acquisition," he warned.

He also noted that Chinese companies should learn lessons from their Japanese counterparts, who experienced failure when they pursued aggressive merger and acquisition strategies in overseas markets 20 years ago.

"Chinese companies have already been very strong in the local market, but it is very difficult to project these domestic strategies outside of China," Bouee said. "Thinking about a proper model for Chinese companies' sustainable overseas development in the next 30 years should be one of the top priorities."

He made these comments on the occasion of Roland Berger's disclosure of the top 20 most globally competitive Chinese companies in 2008. IT giant Lenovo, communication equipment manufacturer Huawei and home appliance giant Haier were among the top 20 winners.

Wanxiang Group, Huawei Technologies Co Ltd and Haier Group were awarded the best Chinese company in America, Europe and emerging markets, respectively.