ByteDance heads first SCMP Plus Going Global 100 ranking

TikTok's parent company ByteDance has been named China's top "Going Global" champion in a new ranking by SCMP Plus. The social media giant claimed the top spot in the inaugural SCMP Plus Going Global 100 ranking, surpassing Apple assembler Foxconn Industrial Internet, online fashion retailer Shein, and electric vehicle maker BYD.

The research project evaluated over 2,000 companies based on overseas revenue, reliance on foreign markets, and the pace of growth. Two-thirds of the 100 companies on the list are technology or consumer companies, indicating the significant role private businesses play in China's overseas expansion through technology development and the creation of global brands.

Private manufacturers are now outpacing state-owned enterprises in overseas expansion, moving beyond being mere assemblers for multinational brands and aiming to escape domestic price wars. Furthermore, ByteDance saw a nearly 50% increase in overseas sales last year, generating more than 30% of its revenue from overseas markets, up from 25% a year earlier.

Its rapid growth was propelled by TikTok Shop, which experienced a 70% surge in gross merchandise value. ByteDance's CEO Zhang Yiming, Asia's richest man, reported US$4 billion in annualized artificial intelligence revenue, the highest among Chinese businesses, although AI investment impacted profitability. The prominence of private technology companies marks a significant shift from the early years of the Belt and Road Initiative, which initially focused on heavy industry and infrastructure.

However, China has shifted its Belt and Road Initiative focus to smaller, more profitable projects since the 2017 tightening of foreign-exchange controls. Chinese outbound direct investment reached a record US$214 billion in 2023, making the country the world's second-largest source of global capital. Chinese tech companies have been leading the shift towards developing and selling new products worldwide, thriving in areas such as online entertainment, AI, e-commerce, and autonomous driving.