China Can Win Big With ‘Little Treats’
It’s the small things that win consumers’ hearts.
Photographer: Adek Berry/AFP
The world’s largest factory has a problem. As the Iran war drags on, prompting worries of a global recession and the destruction of consumer demand, China may struggle to sell its many goods abroad. It’s prompting investors to discuss where to find the most resilient segments of the market and hunt for the next big opportunity.
Several candidates have been floated. Consumers will want to buy more electric vehicles if gasoline prices stay elevated. Overseas shipments at national champion BYD Co. might rise another 50% this year after doubling in 2025, according to Bloomberg Intelligence. Another possibility is leveraging China’s massive reserves of cheap electricity to process tokens — a unit of AI data — as Americans crave more. Token exports can result in as much as a 22-fold increase in value-add for the power-generation industry, according to state media.