Greater Bay Area enterprise outbound insights report: building a globalized ecosystem

As the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) continues to develop, this report explores how GBA enterprises are advancing toward a new model of sustainable, high-quality global expansion with industrial resilience, technological innovation and supportive policies. 

In brief

• Global expansion is shifting from product exports to long-term localized operations. Competitive advantage now depends on sustaining a strong overseas presence, not just entering new markets.
• The GBA is rapidly emerging as a bridgehead for Chinese enterprises going global, supported by strong growth foundations despite ongoing development challenges. 
• The GBA’s competitive edge lies in ecosystem empowerment, while the next phase of global expansion requires sustainable execution over speed.

Amid profound global value chain restructuring and accelerating global expansion of Chinese enterprises, the GBA, with its institutional diversity, concentrated endowments of production factors and industrial completeness, is becoming a vital hub for going global. To systematically articulate this advantage, EY introduces the GBA Globalized Ecosystem framework. Anchored in the overarching vision of “building global competitiveness × participating in global value chain restructuring”, the framework is centered on “Four Pillars and Eight Dimensions” and grounded in the coordinated development of Guangdong, Hong Kong and Macao. Together, these elements form a comprehensive ecosystem that supports enterprises’ global expansion. The GBA Globalized Ecosystem not only serves as a panoramic roadmap but also reveals the key to success: integrating the eight dimensions to transform the GBA’s locational and institutional advantages into global competitiveness, shifting global expansion from isolated breakthroughs to systematic, ecosystem driven expansion.

Challenges and responses for GBA enterprises going global

GBA enterprises benefit from geographic advantages and a strong industrial ecosystem during overseas expansion, yet face multiple challenges, including high compliance costs, global talent shortage, localization difficulties and spillover of intense domestic competition. For enterprises, these challenges are no longer merely market entry issues, but systemic challenges affecting stability, organizational efficiency and long-term profitability of cross-border operations. To address these challenges, enterprises should continuously strengthen their own capabilities while working in synergy with the institutional support and public services provided by governments and industry associations, driving Chinese enterprises' global expansion toward high-quality development.

1. High compliance risks and costs weigh on operational stability

Overseas regulatory environments vary significantly and are increasingly complex, with stricter requirements across taxation, data privacy, labor rights, export controls and ESG. Enterprises need to navigate these evolving standards or face extended project execution and rising operational costs. Meanwhile, most enterprises lack sound compliance mechanisms and professional capabilities to embed risk management throughout investment decisions and long-term operations. Geopolitical tensions and policy volatility in some countries further heighten the uncertainty of operational continuity and overseas assets.

2. Global talent shortage hinders cross-border organizational management 

With the acceleration of global expansion, companies face urgent demand for versatile management professionals with both technical expertise and an international mindset, coupled with deep understanding of overseas regulatory environments, yet market supply remains relatively limited. Meanwhile, local talent reserves are insufficient. Attracting and retaining quality local talent overseas remains challenging due to limited brand recognition and cultural differences. Furthermore, as the number of overseas branches continues to grow, defining the appropriate division of responsibilities between headquarters and local entities, while ensuring effectiveness and empowering local teams becomes increasingly complex. Cross-time-zone and cross-cultural communication efficiency and execution consistency also face significant tests. Without clear control boundaries and digital collaboration mechanisms, enterprises can easily fall into the dilemma of either headquarters micromanagement with slow local response, or insufficient oversight that triggers compliance risks.

3. High localization barriers impede brand development 

Significant market variations in consumer habits, channels and cultures mean that companies cannot simply replicate a uniform business model for overseas operations. In popular markets such as Southeast Asia, countries differ markedly in national conditions, culture, religion, market demand and regulatory requirements. Enterprises generally need to adopt a refined “one country, one strategy” approach, which places considerable demands on market intelligence, talent deployment and resource allocation. Currently, many Chinese enterprises remain in a “strong product, weak brand” phase, prone to relying on price competition for early market entry but struggling to build long-term brand recognition and customer loyalty. Moreover, some enterprises view ESG and social responsibility as compliance costs or one-off investments, lacking a long-term commitment mindset, which undermines deep trust within local mainstream society.

4. Intense homogeneous competition erodes profitability

Domestic market saturation is driving intense “involution” abroad, as Chinese firms replicate business models and strategies in key overseas markets, intensifying the competition. Over-reliance on price competition undermines sustainable operations and brand value. Also, enterprises are competing for local channels, talent and supply chain resources, further driving up operational costs in a zero-sum game. In the long term, this harms both enterprises’ profitability and the overall image of Chinese enterprises overseas.