As the world's largest trader in goods, China has long had a deep presence in global markets.

Yet, most Chinese companies are still in the early stages of globalization, lagging in the share of overseas revenue, localized governance and the ability to allocate resources globally.

As global trade and economic patterns are being reshaped, and domestic factor costs rise, Chinese companies need to move beyond the simple logic of "selling products overseas".

By adopting a "China+N" model for global resource allocation and embracing the idea of the "Chinese people's economy" — one that looks beyond economic activity within China to the value and income generated by Chinese businesses globally — they can turn China's strength in goods trade into broader global competitiveness.

For years, many Chinese companies followed a straightforward model: manufacture at home and sell worldwide. China's complete industrial chains and cost advantages made this highly effective in expanding exports.

Rising protectionism has increased export risks, while higher costs because of domestic factors have squeezed profit margins. More importantly, companies that rely solely on product exports remain passively embedded in global industrial chains. They participate mainly as producers, without sufficient control over distribution channels, technology or rule-setting. That makes high-quality, sustainable growth harder to achieve.

The "China+N" model offers a way forward.

In this, "China" remains the foundation. Core research and development and key supply chains stay at home, drawing on the country's comprehensive industrial system, engineering talent and vast market to preserve the companies' core competitiveness.

"N", meanwhile, represents a flexible global footprint. Companies can locate production, sales, services and business networks in different countries and regions according to local resources, market conditions and policies.

Unlike one-way product exports, this model creates a two-way cycle: research and development at home with implementation worldwide, and global demand answered by capabilities in China.

Under the "China+N" framework, several areas deserve particular attention. Financial services should offer customized, full-cycle cross-border solutions to ease financing pressure and manage exchange-rate risks.

China also needs stronger international legal and compliance services to help companies navigate country-specific regulations and labor disputes.

Overseas warehousing and smart logistics networks should be improved, supported by cross-border digital services that connect global supply-chain data. At the same time, stronger branding services and a larger pool of internationally experienced talent are needed to improve companies' ability to manage across cultures.

This year's China International Fair for Trade in Services starting on Wednesday has created a dedicated section for services supporting companies overseas, bringing together capabilities in finance, law, logistics and digital services.

It reflects a broader shift: the next phase of Chinese companies' globalization will no longer be about individual products or individual companies going abroad, but about entire industrial ecosystems and supporting services expanding together.

Looking ahead, Chinese companies need to preserve and strengthen their advantages at home while deepening their global operations, moving step by step from exporting products to exporting services, systems and entire ecosystems.

By integrating the real economy more closely with modern services and further unlocking the value of the "Chinese people's economy", China can help its companies gain greater command of global industrial-chain resources, play a larger role in shaping international rules, and turn its strength as a major trading nation into broader advantages in global operations and high-standard opening-up — contributing both to China's development and to prosperity around the world.

Source: China Daily