China shift to higher-end exports boosts margins, mutual gains as US reliance dips: report

Since trade war began in 2018, Chinese firms have expanded their global footprint, strengthened supply chains and diversified routes, Goldman Sachs finds

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Shoppers in Bangkok, Thailand, look at China-made Pop Mart figurines, which are in high demand abroad, boosting exports to regions such as Southeast Asia, according to Goldman Sachs. Photo: AFP

Published: 6:00pm, 25 Oct 2025

Flagship Chinese companies, spanning sectors from tech to retail, are increasingly shunning the United States and expanding in less-developed markets such as Southeast Asia, where they can leverage historic low-cost advantages and build out supply chains, a Goldman Sachs strategist said.

Chinese exports to non-US markets have grown at a compound annual rate of about 7.5 per cent since 2018, according to a research note by the investment bank. In contrast, exports to the US have declined by 0.6 per cent annually over the same period.

2018 marked a turning point as trade tensions between Washington and Beijing escalated, prompting Chinese companies to explore new markets, China equity portfolio strategist Si Fu said in an interview on Thursday.

“Overall, we still see the overseas revenue is still growing,” said Fu, who works in the investment bank’s Global Investment Research Division. “And another thing, on products, China has been moving along the value-added curve.”

The manufacturing of toys and textiles, she said, has been replaced by sales of consumer electronics, cars and Pop Mart figurines.

Facing the US market, she said, “for many Chinese companies, they had to shift away or diversify their destinations”.

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