For decades, Chinese companies have distinguished themselves abroad by undertaking large-scale construction and energy projects. Now, however, as many parts of the world enter a new phase of development, they are tweaking their strategies to better align with the evolving environment. Their focus is on generating revenue through higher-value business ventures that are more suited to the changing scene.

For instance, just as multinational automotive manufacturers such as General Motors Co from the United States and Stellantis NV from the Netherlands recently revealed plans to upgrade their production facilities in Brazil and launch a hybrid vehicle in that country later this year, Chinese automaker BYD initiated the construction of its new manufacturing facilities in the Brazilian state of Bahia in early March.

BYD's Brazil unit will produce electric and hybrid vehicles, electric buses and trucks, and battery products for both local and global markets.

According to an announcement from the local government, BYD's automobile manufacturing plant is anticipated to begin operations between late this year and early 2025. The initial production capacity is set at 150,000 electric and hybrid vehicles per year, with potential to expand to 300,000 units in the future.

Recognizing the need to directly compete with both domestic and international competitors in foreign markets, Great Wall Motor Co Ltd, another Chinese automaker, started upgrading its production lines at its factory in the Brazilian state of Sao Paulo last year. The company plans to start manufacturing electric vehicles later this year.

Even though ports, bridges, railway lines, mining and energy-related facilities continue to bear testimony to Chinese firms' capabilities, a growing number of Chinese companies are now expanding their ventures into high-tech manufacturing, innovation-driven businesses, clean energy, logistics, cross-border e-commerce and service sectors abroad, said Lyu Yue, a professor of the Academy of China Open Economy Studies, part of the University of International Business and Economics in Beijing.

China's nonfinancial outbound direct investment grew by nearly 17 percent year-on-year to 916.99 billion yuan ($127.37 billion) in 2023, data from the Ministry of Commerce showed.

Nonfinancial ODI in countries and regions participating in the Belt and Road Initiative came in at 224.09 billion yuan last year, soaring more than 28 percent year-on-year.

China's ongoing efforts to expand its institutional opening-up and seal high-standard economic and free trade deals, coupled with the rapid growth of its tech-intensive green product industries, are expected to drive its companies to strategically invest in new plants, service and innovation facilities in overseas markets, said Zhao Ping, dean of the Beijing-based Academy of China Council for the Promotion of International Trade.

"The ongoing restructuring of the global supply chain presents opportunities for Chinese companies to align their strengths with evolving market demands. Chinese firms are demonstrating strong competitiveness in manufacturing sectors like new energy vehicles, lithium-ion batteries and photovoltaic products, resulting in greater acceptance of their involvement by numerous countries," said Zhao. She predicted that China's ODI will grow steadily this year.