With service trade as its core focus, this year's World Trade Organization (WTO) Public Forum placed digitalization and technological innovation at the center of discussions, signaling a fundamental shift in global competition for Chinese enterprises.

According to WTO statistics, global service trade volume is projected to grow by 4.8% in 2026, significantly outpacing goods trade. In 2025, commercial services already accounted for 27.6% of total global trade, with digitally delivered services surging 10% that year. For Chinese companies, this means global competition is extending beyond simple product exports into services, technology, and long-term operational capabilities.

Chris Pereira, founder and CEO of MeiXun and a guest lecturer at Xi'an Jiaotong-Liverpool University in Suzhou, told the forum that as Chinese companies enter a new phase of global expansion, earning trust in local markets has become a fresh challenge. Pereira, who speaks fluent Chinese and has spent two decades studying Chinese corporate globalization and brand localization, noted that the meaning of localization is expanding rapidly.

For new energy vehicles, smart home appliances, and digital platform companies, localization now extends far beyond the physical product. A single electric vehicle entering an overseas market requires consideration of software updates, after-sales maintenance, charging infrastructure, data management, and consumer support. Smart appliance makers must navigate local digital ecosystems, privacy regulations, and service requirements. This transformation means a company's overseas presence is no longer confined to goods alone but gradually extends into services, technology, and operational systems.

Where to Begin

Pereira observes that Chinese enterprises are moving from simply selling products to establishing autonomous brands, then to building factories, opening stores, hiring local staff, and creating R&D and supply chain systems abroad. This evolution reshapes the relationship between Chinese companies and overseas markets entirely. As he puts it, "This is no longer simple product export—we've entered a phase of deep localization."

"Many Chinese companies possess excellent products, pricing, systems, and services, but once they enter overseas markets, they still need to build their reputation from scratch," Pereira said. He breaks down the globalization journey into distinct phases: product export, brand building, and now deep localization. True localization, he argues, isn't about registering a local entity or translating Chinese ads into another language. "Localization means putting down roots," he explains. It requires opening stores, establishing factories, building teams, and cultivating long-term relationships with local governments, customers, media, associations, investors, and communities.

Why Trust Matters More Than Products

This shift forces Chinese companies to redefine competitiveness. While supply chains, cost efficiency, and product performance can open market doors, "product advantages are just the ticket to entry—trust becomes the foundation for long-term operations," Pereira emphasizes. He dissects trust into several layers, starting with confidence in policy and business environments.

The WTO's latest Global Trade Report highlights multiple challenges facing the global trading system, including rule updates, geopolitical tensions, digital trade development, and economic policy shifts. WTO Director-General Ngozi Okonjo-Iweala has called for strengthened multilateral cooperation to prevent further fragmentation. For Chinese firms establishing long-term operations abroad, understanding local rules and building compliance systems has become an integral part of localization.

"Chinese companies entering a country don't necessarily require a completely barrier-free market, but they need to understand what the rules are, what the regulatory direction is, and whether the future operating environment offers stability and predictability. They need clear compliance direction and boundaries—they need a trustworthy environment," Pereira explained.

Customer Relationships Are Not Networking

Another critical dimension involves third-party validation. "Companies can't just tell the market 'my product is great' or 'my technology is advanced and my supply chain is strong.' After entering overseas markets, companies need recognition from third parties," Pereira said. Even a brand with excellent product sales can face vulnerability if local consumers, media, government bodies, industry organizations, and communities lack basic awareness of it. In a negative event, such companies may lack sufficient trust capital to respond effectively.

In other words, companies must shift from "proving themselves" to "letting others prove them." This applies equally to B2B enterprises. "If no one locally truly understands you, it's hard to find someone to explain on your behalf when problems arise," Pereira noted. This insight drives his "5R Integration" methodology: Government Relations (GR), Business Relations (BR), Investor Relations (IR), Corporate Social Responsibility (CSR), and Human Resources/Talent Relations (HR), with Public Relations (PR) serving as the connective tissue linking these relationships.

"Governments need to trust you for stable operating environments; customers need to trust you for long-term market viability; investors need to trust you for sustained capital; local talent needs to trust you to build authentic local teams; and fulfilling corporate social responsibility builds connections with local communities," Pereira elaborated. For companies just beginning their overseas journey, customers remain the fundamental starting point, but as operations scale, relationships with governments, talent, investors, associations, and communities grow increasingly important.

Speed Can Become an Obstacle

Pereira offers a long-standing observation about Chinese companies' global ambitions: "One of the biggest advantages of Chinese enterprises is speed, but speed can also become a barrier to localization." He warns that many companies bring "Shenzhen speed" to Western markets, hoping to replicate domestic success rapidly. However, overseas regulatory frameworks, consumer protections, business decision-making, and relationship building typically require more time. Some enterprises rush toward results before fully adapting to local business norms.

Therefore, Pereira advocates for a critical mindset shift: from customer-centric to local-market-centric thinking. "Customers are only part of the market. True localization means understanding the entire local ecosystem," he said.

Looking ahead to the next decade, Pereira observes that companies like Hisense, Midea, and TCL are proactively strengthening brand communication in local markets. Their communication goals have moved beyond brand awareness toward deeper cultural recognition. Drawing on his own Canadian upbringing, he recalls how Japanese elements—Sony televisions, Nintendo consoles, manga comics, and neighbors working at Japanese auto companies—shaped his perception of Japanese brands and society without any explicit cultural indoctrination.

"Chinese brands may go through a similar process," he speculates. In five to ten years, overseas communities might become accustomed to children familiar with Labubu, daily TikTok usage, neighbors working at BYD, and local Miniso stores. When appliances, vehicles, cultural products, digital apps, and software services gradually enter ordinary people's daily lives, their influence transcends mere commodity impact.

"This might be the deeper meaning of Chinese enterprise globalization—from a product entering a country, to a company entering a society, then to becoming part of the local economy and community," Pereira said. Throughout this journey, what Chinese companies need to establish isn't just consumer trust in products, but trust from local governments, employees, partners, investors, media, and communities in the company's long-term presence.

"I'm an extreme optimist," Pereira declares. Having spent two decades in China, he has witnessed Chinese companies' remarkable speed and adaptability in responding to market changes. In his view, overseas market uncertainties are not insurmountable challenges for Chinese enterprises. What truly matters is believing in companies' adaptive capacity while allowing sufficient time for localization and relationship building. For companies that already possess product, technology, and supply chain advantages, establishing long-term trust locally may well become the defining factor in the next phase of global competition.