China’s economy struggles, but its firms thrive overseas, exporting tech, IP, and culture. Global profits now drive China’s growth, reshaping its economy. Chinese companies see 16% of revenue from overseas, up from 14% in 2018, and expected to keep climbing. Chinese exports now include EVs, batteries, and solar panels, competitively priced at a discount of 15% to 60% compared to rivals. Chinese companies have diversified supply chains, reducing US exposure to roughly 4% of sales. Weakness at home fuels overseas success, with damaging price wars squeezing profit margins. The global push could lead to China’s GNP outpacing its GDP, affecting markets as earnings become less tied to domestic demand. Leading Chinese companies already earn about 34% of revenue abroad, showing nearly 40% year-to-date growth.

Read more at Yahoo Finance: China’s economy is struggling, but its homegrown companies are dominating abroad, Goldman Sachs says