AI helps Chinese firms take root overseas

When Shenzhen-based M-Star Packaging Group opened its overseas factory in Riverside, California, earlier this year, the move quickly proved its value. Within just three months, the facility received orders totaling more than 1,000 metric tons of logistics stretch wrap, a rare early success for a Chinese manufacturer establishing production in the United States.

This rapid market expansion was driven not only by competitive manufacturing, but also by strategically leveraging artificial intelligence to guide decisions before and after entering overseas markets.

"It is never easy to set up factories in the US," Zhang Xiaoming, chairman of M-Star, said on Sunday at a business forum hosted by the Chinese University Alumni Association Alliance of Southern California. "But if overseas markets are selected accurately based on demand, policies and competition, the likelihood of success increases significantly."

Relying on local partners and AI-assisted research on regulations, cost structures and supply-chain conditions to assess the feasibility of its US investment, M-Star was able to design localized operating strategies, including team-building, management models and supply-chain localization.

"These are replicable experiences that help companies move from mere survival to sustained success overseas," Zhang said.

As Chinese enterprises face rising compliance requirements and geopolitical uncertainty, AI is increasingly being used as a "risk radar" to help them assess risks, avoid localization pitfalls and make evidence-based decisions before committing capital abroad, said Gu Lingyun, founder and CEO of IceKredit, which provides AI-driven business services.

"Traditionally, enterprises needed days, weeks or even a month to become familiar with overseas regulations, business models and market analysis," Gu told China Daily at the forum. "Now, with AI technology, it can take just a few minutes or a few hours for legal teams to reach a preliminary understanding."

The AI-driven business intelligence products are designed to rapidly analyze competitors, market conditions and seasonal trends, providing decision-makers with actionable insights.

Gu said AI can also support customer acquisition and internal training, including language and cultural translation.

More than 500 Chinese clients, mainly from financial institutions and manufacturing, have expressed strong interest in entering the US market by leveraging AI-driven agents to conduct tailored market and product analysis, he said.

However, technology alone cannot offset political realities, he said."Given the challenging China-US relationship, mutual respect is essential. Without mutual respect, there is no way forward for companies on either side."

Reshaping supply chains

Beyond market research and compliance, AI is also reshaping global supply chains, a key challenge for Chinese companies expanding overseas.

Wang Mingming, general manager of Thunder International Group, said AI is increasingly being used to align China's manufacturing strengths with the regulatory and branding requirements of the US market.

"The real advantage of Chinese e-commerce lies not just in traffic, but in supply-chain organization and responsiveness," she said.

"Compliance is not a cost, but a barrier to entry."

Sophie Zhu, global director at Shopline US, said that AI is also playing a growing role in localization, enabling Chinese companies to provide multilingual customer support and tailored content to local audiences more efficiently.

From a broader perspective, AI is also reshaping the foundations of global supply chains. Allen Hao, an expert in AI and analytics program management for supply chains, said that in the AI era, competitiveness will be defined by adaptability rather than size alone.