Lei Jun, founder of China's homegrown smartphone vendor Xiaomi and deputy to the National People's Congress (NPC) [Photo / China.org.cn]

Chinese authorities should establish business incubators in countries along the Belt and Road region to offer consulting services for Chinese firms and help bridge cooperation, a business leader suggested on March 6.

Lei Jun, founder of China's homegrown smartphone vendor Xiaomi and deputy to the National People's Congress (NPC), made the remark during a press conference in Beijing at the height of the ongoing session of China’s top legislature.

Given the differences in laws, regulations as well as policies of national security, environmental protection, labor force and taxation, foreign companies can meet many difficulties and risks in the initial stages of their business expansion, said the billionaire investor, citing the hard journey in Xiaomi’s expansion in Southeast and South Asian countries.

He called on government agencies to help businesses better adapt to the political and economic environments in host countries by setting up liaison offices and business incubators that provide a portfolio of services like risk control, policy and legal consultancy as well as brand promotion.

The tech firm started overseas expansion three years ago and is now selling products in over 20 countries and regions worldwide.

It took Xiaomi two years to become one of the top five smartphone brands in India, its largest overseas market, which brought in sales of about US$1 billion in 2016.

Still, the tech mogul is still cautious for hasty overseas expansion, saying that “it takes time and resources to learn about a new market due to differing cultural, legal and business environments.”

He suggests that the upcoming Belt and Road Summit, which will be held in May this year, should become a long-term mechanism to enhance exchange and communication in political and business circle.