Amid escalating geopolitical tensions between China and the US, some Chinese venture capital firms are seeking to expand their operations in South and Southeast Asia, as discussed by investors at a business expo in Macau. Thomas Tsao, Co-founder and Managing Director of Gobi Partners, mentioned that his firm is particularly interested in opportunities in Pakistan, citing the country’s youthful population, the rising adoption of internet and mobile banking, and the government's initiatives to foster a favorable investment climate.
“From a political standpoint, China and Pakistan are fairly close, and that is a big market opportunity”, Tsao said at Beyond Expo, billed as Asia’s largest event for tech innovation trends. Some of the startups supported by Gobi Partners are presenting their products and services at the expo in Macau. Some 500 speakers and 800 exhibitors from industries including healthcare, sustainability and consumer tech were gathered at the annual event. Celebrities including football star and entrepreneur David Beckham and singer Jackson Wang were also invited for fireside chats.
Chinese electric-car battery manufacturer Contemporary Amperex (CATL) and the Macau government have announced a partnership to advance green development in the Guangdong and Hengqin regions. They plan to utilize CATL’s extensive resources, market presence, technological expertise, and talent pool for this initiative. Despite potential concerns due to geopolitical tensions, Thomas Tsao of Gobi Partners highlighted that as an early-stage investor, the firm maintains an optimistic perspective, focusing on broad trends to gain insights into developments across Asia.
Chinese tech companies, such as short video platform operator Kuaishou, are looking beyond China to tap into substantial markets in Indonesia, Brazil, and the Middle East. Super Hi International, the offshore unit of the Chinese hotpot restaurant chain Haidilao, aims to enhance its global presence with a US listing. According to Ian Goh, founding partner of Shanghai-based early-stage venture capital firm 01VC, Chinese companies are keen to expand into offshore markets and replicate their successful business models there.
A 'light touch' approach to expansion, whereby talent from China is exported to other markets to kick-start a new set-up, may no longer work in today’s complex business and political environment, he added. “We are looking at bringing the entire supply chain from China to our global market,” Goh said at the expo. “We had to rethink that strategy” as companies will need to negotiate different and tougher regulations in each market", he added.