Chinese tech firms are aggressively expanding globally, with the largest stock offering on Shanghai’s tech-focused STAR board spotlighting the U.S. as a key market alongside China. Shenzhen-based Insta360, a competitor to GoPro, raised 1.938 billion yuan ($270 million) in its Shanghai IPO under the name Arashi Vision on Wednesday. Shares surged 274%, pushing the company’s valuation to 71 billion yuan ($9.88 billion).
Insta360 reported that last year its revenue was roughly evenly split, with just over 23% coming from the U.S., Europe, and mainland China each. The company’s 360-degree cameras, available in Apple Stores since 2018, pair hardware priced in the hundreds with video editing software. Co-founder Max Richter expressed confidence in continued strong U.S. demand, dismissing geopolitical concerns.
Growth of the Shanghai STAR Market and Global Reach
Launched in July 2019, the STAR Market supports high-growth tech firms with stricter investor requirements to curb speculation. Analysis shows that companies reporting at least half of their revenue from outside China rose from 12% in 2019 to over 14% in 2024. InvestHK’s King Leung sees this as just the beginning, highlighting companies like battery maker CATL and many capable tier-two and tier-three enterprises.
Roborock, a robotic vacuum maker on the STAR board, plans a Hong Kong listing, with over half its revenue last year from overseas markets. Hisense aims to be the top TV seller in the U.S. within two years, while baby product company Babycare recently expanded officially into the American market.
New Phase of Overseas Expansion
Slower domestic growth and subdued consumer demand have pushed Chinese companies to seek international markets. Charlie Chen from China Renaissance Securities says this expansion has entered a new phase where Chinese companies build global brands with local offices and hire native staff — a shift from previous reliance on manufacturing or joint ventures.
Insta360 now has offices in Berlin, Tokyo, and Los Angeles, with L.A. focusing on marketing and services. Its first major U.S. product launch took place in New York earlier this year.
Chen also expects the global expansion to include new categories like toys. Beijing-based Pop Mart has grown rapidly abroad with its character-driven Labubu figurine series. Its overseas sales in 2024 hit 5.1 billion yuan, surpassing total domestic sales from 2021. Pop Mart quietly opened at least 17 U.S. stores by mid-2024, most within the last two years.
Author’s Opinion
Trade tensions and geopolitical issues are challenges, but Chinese firms are proving resilient by evolving their strategies. They’re not just exporting products; they’re establishing brands with local presence, tapping into consumer trends, and responding to global demand. This approach could reshape global commerce for years to come.
Featured image credit: Maik Kleinert via Pexels
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