AI-powered globalization helps Chinese firms take root overseas

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

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

"It is never easy to set up factories in the US," Zhang Xiaoming, chairman of the company, said at a business forum hosted by the Chinese University Alumni Association Alliance of Southern California on Sunday.

"But if overseas markets are selected accurately based on demand, policies and competition, the likelihood of success increases significantly," he said.

Relying on local partners and AI-assisted research on regulations, cost structures and supply-chain conditions to assess the feasibility of its US investment, Zhang's company 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 companies assess risks, avoid localization pitfalls and make evidence-based decisions before committing capital abroad, according to Gu Lingyun, founder and CEO of IceKredit, a high-tech company providing AI-driven business services.

One of the biggest hurdles for China-based companies expanding overseas remains the time-consuming process of understanding new markets, particularly language, culture and regulatory frameworks.

"Traditionally, enterprises needed days, weeks or even a month to become familiar with overseas regulations, business models and market analysis," Gu told China Daily during 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.

"This wide-range translator can help companies navigate new markets more effectively," Gu said, noting that AI can also support customer acquisition and internal training, including language and cultural translation.

According to Gu, more than 500 Chinese clients, mainly from financial institutions, manufacturing, e-commerce and education, have expressed strong interest in entering the US market by leveraging AI-driven agents to conduct tailored market and product analysis.

"These companies are looking for cost-effective strategies to tap into the large American market," he said. "AI helps them make preliminary market-entry decisions with far lower trial-and-error costs."

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

Beyond market research and compliance, artificial intelligence 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.

According to Wang, AI-driven tools now help Chinese suppliers redesign production, inventory and fulfillment systems around US consumers and compliance standards, rather than a traditional export-oriented model.

"Compliance is not a cost, but a barrier to entry," she said, adding that Chinese supply chains that upgrade toward compliance, sustainability and localized collaboration are more likely to become long-term partners.

Sophie Zhu, global director at Shopline US, said AI is also playing a growing role in localization, enabling Chinese companies to provide multilingual customer support and tailor 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.

"The future of supply chains won't be about who is stronger, but about who can adapt faster to the changes brought by AI," Hao said.

He cited findings from the Massachusetts Institute of Technology's report The Iceberg Index: Measuring Skills-centered Exposure in the AI Economy, which shows that AI is already capable of handling more than 11.7 percent of the US labor market across finance, healthcare, human resources and administrative roles, representing about $1.2 trillion in wage value.

"This reflects what AI can do today, not a future projection," Hao said. "The age of AI isn't coming, it's already here beneath the surface."

As China's outward investment continues to evolve, artificial intelligence is emerging as a key enabler of higher-quality globalization. According to data from the Ministry of Commerce, China's non-financial outbound direct investment has remained at over $140 billion in recent years, with a growing number of enterprises shifting from traditional trade toward localized production and operations overseas.