China’s new global push: From fast fashion to electric vehicles

A decade ago, the idea that Chinese brands would become fixtures on America’s most fashionable streets seemed far-fetched. Today, shoppers in Manhattan can browse the sprawling 2,800-square-metre flagship of Urban Revivo, sip a latte from Luckin Coffee, or queue for ice cream from Mixue.

As The Economist observes, these scenes capture a broader shift: Chinese companies are no longer tentative exporters or opportunistic dealmakers abroad. They are becoming confident global operators, expanding rapidly across industries and geographies.

The scale of this expansion is striking. In 2024 listed Chinese firms generated 15trn yuan ($2.1 trillion) in overseas sales, up sharply from less than 11.6trn yuan in 2021, according to data cited by The Economist.

BYD, China’s electric-vehicle champion, has overtaken Tesla in global sales, with more than a fifth of its cars now sold abroad. Chinese artificial-intelligence models, once assumed to be confined to domestic or developing markets, are being used by Western firms such as Airbnb. This wave stands out not just for its speed, but for its breadth—from consumer brands and EVs to cloud computing and industrial equipment.

Chinese firms have gone global before, but with mixed success. The first wave, following China’s accession to the WTO in 2001, focused on exporting cheap, China-made goods, often burdened by a reputation for low quality.

A second surge in the mid-2010s saw conglomerates such as Anbang and HNA splurge on overseas acquisitions, only to be reined in by wary Western regulators and debt crises at home. Meanwhile, state-owned enterprises found more durable success building infrastructure across the global south under the Belt and Road Initiative.

The current push, The Economist argues, is different. It is driven partly by necessity: China’s domestic economy has slowed, price wars are intense, and average operating margins for listed firms have fallen from 12.4% in 2019 to 11.2% in 2024.

Overseas markets often offer healthier returns. But opportunity matters just as much. Chinese companies have learned from decades of competition with foreign multinationals at home and now produce advanced goods ranging from robots to medical devices. Trailblazers like ByteDance and Shein have shown that China can innovate globally, not merely imitate.

To succeed, firms are rethinking how they operate abroad. Historically, they kept most functions in China, which helps explain why China’s stock of outbound foreign direct investment was just 17% of GDP in 2024—far below America or Japan. That is changing.

Rising labour costs and Western tariffs are pushing manufacturers to build factories overseas, often in the global south. Retailers such as Miniso and Xiaomi are rolling out thousands of foreign stores, while companies like Alibaba are expanding data centres to serve international clients.

This shift brings complications. Regulatory scrutiny in the West, especially in sensitive sectors such as technology, has forced firms to adopt complex corporate structures, raising costs and uncertainty.

At the same time, Chinese authorities are uneasy about profits parked offshore or companies relocating headquarters abroad. Yet Beijing also recognises the soft power of global brands.

As The Economist notes, state media now celebrate the global popularity of PopMart’s Labubu toys as a sign of cultural strength.

Despite the risks, the trajectory is clear. Chinese companies are becoming more embedded in local markets, hiring local staff and mastering foreign supply chains. For consumers worldwide, that means one thing is increasingly certain: stumbling across a buzzy Chinese brand will soon feel entirely ordinary.

By Sabina Mammadli