{"id":35946,"date":"2025-10-21T05:11:20","date_gmt":"2025-10-21T05:11:20","guid":{"rendered":"https:\/\/agooka.com\/news\/usa\/chinas-economy-is-struggling-but-its-homegrown-companies-are-dominating-abroad-goldman-sachs-says\/"},"modified":"2025-10-21T05:11:20","modified_gmt":"2025-10-21T05:11:20","slug":"chinas-economy-is-struggling-but-its-homegrown-companies-are-dominating-abroad-goldman-sachs-says","status":"publish","type":"post","link":"https:\/\/agooka.com\/news\/usa\/chinas-economy-is-struggling-but-its-homegrown-companies-are-dominating-abroad-goldman-sachs-says\/","title":{"rendered":"China&#8217;s economy is struggling, but its homegrown companies are dominating abroad, Goldman Sachs says"},"content":{"rendered":"<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/68f707911c1f80efbec5f0ad?format=jpeg\" alt=\"Customers shop at a Pop Mart store in Los Angeles, California.\"\/><figcaption>In the US, consumers have become increasingly familiar with Chinese upstarts like Labubu-maker Pop Mart, a symbol of how China&#039;s brands are going global.<\/p>\n<p>I Ryu\/VCG\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<ul>\n<li>China&#039;s economy may be sputtering but its homegrown firms are cashing in overseas.<\/li>\n<li>China is moving beyond making cheap goods to exporting tech, intellectual property, and culture.<\/li>\n<li>Global profits are becoming China&#039;s newest growth engine, which could reshape its economy.<\/li>\n<\/ul>\n<p>China&#039;s economy is still stuck in a yearslong slump marked by a property crisis, weak consumer demand, and deflation \u2014 but its biggest companies are raking in cash abroad, according to a new Goldman Sachs report.<\/p>\n<p>As the domestic market stagnates, Chinese firms are turning abroad for customers and finding fatter profits once they get there.<\/p>\n<p>Gone are the days when China was simply exporting more goods at rock-bottom prices. It&#039;s now exporting services, technology, intellectual property, and culture.<\/p>\n<p>It has also strategically increased its overseas direct investment in recent years, particularly to emerging markets and Belt and Road Initiative countries.<\/p>\n<p>&quot;This strategy enables Chinese companies to diversify supply chains, build production capacity closer to end markets, and enhance business resilience,&quot; wrote analysts from Goldman Sachs in a note republished on Sunday.<\/p>\n<p>Chinese listed companies now earn about 16% of their total revenue overseas, up from 14% in 2018, per Goldman&#039;s analysis. That&#039;s well below the roughly 50% average for developed-market firms, but it&#039;s rising fast.<\/p>\n<p>The bank expects that share to keep climbing by about 0.6 percentage points a year.<\/p>\n<h2>Beyond &#039;Made in China&#039;<\/h2>\n<p>The shift marks a clear break from China&#039;s old growth model. For decades, &quot;Made in China&quot; meant low-cost manufacturing for Western consumers.<\/p>\n<p>Now, the country&#039;s exports are moving up the value chain. The offerings span broad categories, from toys and furniture to electric vehicles, lithium-ion batteries, and solar panels.<\/p>\n<p>Chinese products also remain competitively priced at a discount of 15% to 60% compared with global rivals, according to Goldman&#039;s analysts.<\/p>\n<p>In the US, consumers have become increasingly familiar with Chinese upstarts like Labubu-maker Pop Mart, Luckin Coffee, and Temu, which are exporting not just products but China&#039;s digital business models abroad.<\/p>\n<p>Tariffs haven&#039;t slowed the companies&#039; momentum either. Goldman estimates that a 100% tariff on Chinese exports to the US would cut corporate earnings by only around 10% in the short term, since many firms have diversified supply chains and reduced US exposure to roughly 4% of sales.<\/p>\n<p>The success of Chinese firms overseas is fueled by weakness at home.<\/p>\n<p>A &quot;nexus of overcapacity, intense competition, and disinflation,&quot; Goldman notes, has caused damaging price wars that have squeezed profit margins across many industries.<\/p>\n<h2>A global growth shift<\/h2>\n<p>The global push could have broader economic effects.<\/p>\n<p>As more profits flow from overseas subsidiaries, a measure of total income earned by a country&#039;s citizens and companies worldwide. China&#039;s gross national product, or GNP, may eventually outpace its GDP, much like Japan after its asset bubble burst in the 1990s, according to Goldman.<\/p>\n<p>That shift could affect markets as Chinese corporate earnings become less tied to domestic demand and more dependent on global consumption trends.<\/p>\n<p>Goldman highlights a group of 25 leading companies across 12 industries that already earn about 34% of their revenue abroad. On average, those stocks \u2014 including Alibaba, BYD, and PDD Holdings \u2014 are up nearly 40% year-to-date.<\/p>\n<p>&quot;These trends could extend, supported by Chinese companies&#039; comparative cost advantages and product quality upgrade,&quot; wrote Goldman&#039;s analysts, referring to firms&#039; overseas growth momentum.<\/p>\n<p>Read the original article on Business Insider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the US, consumers have become increasingly familiar with Chinese upstarts like Labubu-maker Pop Mart, a symbol of how China&#039;s brands are going global. I Ryu\/VCG\/Getty Images China&#039;s economy may be sputtering but its homegrown firms are cashing in overseas. China is moving beyond making cheap goods to exporting tech, intellectual property, and culture. Global [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":35947,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-35946","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usa"},"_links":{"self":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/35946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/comments?post=35946"}],"version-history":[{"count":0,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/35946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media\/35947"}],"wp:attachment":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media?parent=35946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/categories?post=35946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/tags?post=35946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}