Chinese Firms Face Property Hurdles in Overseas Expansion

May 25, 2026 - 11:31

A new report from JLL reveals that 82% of Chinese companies expanding internationally are encountering higher costs or significant delays when trying to secure property and office space abroad. The findings highlight a growing challenge for Chinese firms as they push into global markets, facing not only financial hurdles but also operational setbacks that can damage their reputations.

Experts warn that these property-related issues often stem from unfamiliarity with local regulations, zoning laws, and real estate practices. Many Chinese companies underestimate the complexity of leasing or purchasing commercial property in foreign countries, leading to rushed decisions or failed negotiations. The resulting delays can disrupt supply chains, postpone market entries, and create negative impressions among local partners and customers.

Beyond the immediate financial strain, the report emphasizes the risk of reputational harm. When a company struggles to secure a stable base of operations, it may appear unprepared or unreliable. This perception can erode trust with local clients, suppliers, and even government authorities.

To mitigate these risks, analysts recommend that Chinese firms invest in local expertise before signing any property agreements. Partnering with experienced real estate consultants and legal advisors familiar with the target market can help avoid costly mistakes. As overseas expansion continues to be a priority for many Chinese businesses, overcoming these property hurdles will be essential for long-term success.