80% of Chinese companies plan overseas expansion within three years: UOB

Eight in 10 Chinese companies plan to expand overseas within the next three years, as firms continue to strengthen their international strategies and seek new growth opportunities, according to a survey by United Overseas Bank (UOB).

The 2026 UOB Business Outlook Survey Report (Mainland China Edition – Part 1) found that Chinese companies are increasingly shifting from simply “going global” toward establishing deeper and more localized operations abroad.

ASEAN remains the preferred destination for Chinese companies’ overseas expansion, with Malaysia, Singapore and Thailand among the most attractive markets, the report said.

The survey, conducted in January, gathered responses from senior executives and key decision-makers at 380 medium and large Chinese enterprises across industries including manufacturing, consumer goods and wholesale trade, construction and real estate, professional and business services, health care, and technology, media and telecommunications.

The report noted that companies are increasingly viewing overseas markets as long-term strategic opportunities rather than short-term expansion targets. To support their international operations, many firms are strengthening supplier networks and building more flexible and diversified business models tailored to local markets.

Meanwhile, digital transformation remains a major focus for Chinese companies. Nearly 90% of surveyed enterprises said they have started digital transformation initiatives, although only 43% reported achieving their expected results.

The report identified insufficient digital skills among employees, high implementation costs and cybersecurity risks as key challenges preventing companies from fully benefiting from digital transformation.

Despite these obstacles, investment momentum remains strong. More than 70% of surveyed companies plan to increase digital spending this year, while more than 60% have begun adopting artificial intelligence (AI) technologies.

Companies said improving production efficiency, optimizing costs and enhancing customer engagement are among the main benefits they expect from AI adoption.

Adeline Zheng, president and CEO of UOB China, said Chinese enterprises are developing new growth drivers through digital transformation, AI adoption, supply chain optimization and regional expansion.

“Chinese companies’ internationalization is gradually moving toward localized and regional operations, with greater focus on building long-term operating capabilities,” Zheng said.