Rethinking Global Expansion for Asian Companies
How do you exploit global opportunities and manage challenges in times of uncertainty?
In 2024, the Nobel Prize in Economics was awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson. In a nutshell, their findings show that countries which promote broad participation, secure rights and the rule of law, are economically more successful longer-term than those who concentrate power and wealth among an elite, hindering development.
Since the beginning of 2025, the existing rule-based world order has been arbitrarily disrupted. You hit me with tariffs, I will hit you back becomes the new norm. In this case, the majority of economists and common sense are closely aligned. There will be no winner in this game!
Asian Tech companies, from Israel to India to China and Japan traditionally have been seeking international expansion in the US. While the U.S. remains a significant market, recent events have highlighted volatility in policy, trade relationships, and even social stability and political unrest. Neither of these form a good environment for businesses.
Given the situation, a strategic pivot or parallel expansion is the European market:
The benefits of entering the European market for Asian Tech companies are numerous:
• Stability and Predictability. – The 27 member states of the European Union are governed by a relatively harmonized legal framework, particularly in areas like Data Protection (GDPR), the Digital Services Act, and the Digital Markets Act.
• Enhanced Brand Reputation. – Complying with such regulations, which have set worldwide benchmarks, builds not only trust with European customers. It opens doors to new partnerships in and outside of Europe, e.g. along supply chains, and lifts your reputation as a serious global player.
• Unrestricted Access to 27 Markets. – The EU allows for free movement of services, capital, goods and people. Your company would have free access to 27 member states, while the EU (447 million people and spending on digital transformation in governments and the private sector is expected to grow by 16.4% CAGR until 2030) across the continent is expanding to add 8 more countries with approx 100 million additional people.
• Diverse and Skilled Workforce. – A highly educated and diverse workforce will benefit your company. Countries like Germany, France or the Netherlands are known for their robust engineering and Eastern EU for technical talent pools.
• Growing Demand for Digital Transformation. – The region offers huge opportunities in areas such as manufacturing, FinTech, artificial intelligence, Cyber Security and Cloud Computing.
In case you want to learn more about risks and opportunities associated with an expansion into the European market please contact us
Info@TenX2.com
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