PKU scholar maps China enterprise overseas expansion trends

China’s outbound investment momentum shows no signs of cooling, even as manufacturers and trading companies navigate a more fragmented global trading environment, according to new analysis from one of the country’s leading policy think tanks.

Deng Ziliang, a researcher at Peking University’s National School of Development (NSD), has published a detailed overview of the latest trends shaping Chinese enterprise overseas expansion, drawing on official data that points to a sharp acceleration in cross-border activity over the past three years.

Figures from a northern Chinese provincial commerce department cited by Deng show the cumulative number of approved and filed overseas investment enterprises and institutions climbed from 280 in 2022 to 506 in 2024 — an 81 percent increase in just two years. The data underscores a structural shift in the country’s export-oriented economy, with firms increasingly setting up production, distribution, and sales operations abroad rather than relying solely on shipping finished goods from domestic factories.

That trajectory has direct implications for the Chinese fishing tackle sector, where thousands of manufacturers in clusters across Guangdong, Zhejiang, and Shandong have historically depended on overseas distributors and trade show orders to reach recreational anglers in Europe, North America, and emerging markets. A growing share of those companies are now pursuing direct overseas investment, establishing warehouses, assembling facilities, and even acquiring downstream brands in key consumer markets.

However, Deng’s analysis also highlights the growing headwinds facing Chinese companies abroad. He points to a deepening restructuring of the global political and economic order in 2025, marked by intensifying geopolitical competition, rising anti-globalization sentiment, and a more uncertain international operating environment. Trade frictions, supply chain reshoring initiatives in Western markets, and tighter screening of Chinese investment in sectors deemed strategically sensitive are all adding friction to the expansion playbook.

For fishing tackle exporters, these dynamics are already visible. Several major Chinese rod and reel manufacturers have begun diversifying production footprints into Southeast Asia, while lure and accessory makers are investing in European logistics hubs to shorten delivery times and sidestep tariff uncertainties. The shift represents a maturation of a sector that once relied almost exclusively on OEM arrangements, and reflects a broader pattern Deng identifies among Chinese mid-sized enterprises seeking to build resilient, market-facing operations overseas.

Deng’s commentary, published through NSD’s public affairs platform, frames overseas expansion as both an opportunity and a strategic necessity for Chinese firms facing saturated domestic competition and a more demanding global marketplace. His analysis suggests that companies able to combine cost advantages with localized branding, after-sales service, and compliance infrastructure will be best positioned to capture growth in the next phase of China’s outbound investment cycle.

The Peking University findings come as China’s fishing tackle industry continues to consolidate its position as the world’s dominant production base, supplying an estimated two-thirds of global angling equipment. The question facing exporters now is not whether to expand abroad, but how to structure those operations to withstand an increasingly uncertain trade landscape.

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