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China's AI Trade Shifts: Global Winners Outperform Local Firms Amid Fierce Competition
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CNBC TV18•23-09-2026, 08:06
China's AI Trade Shifts: Global Winners Outperform Local Firms Amid Fierce Competition
- •Chinese AI firms focusing on international markets are significantly outperforming those dependent on domestic sales, with a Bloomberg gauge showing a 36% return for export-oriented stocks versus 9% for local-focused ones.
- •Beijing's push for AI self-sufficiency has intensified domestic competition and price wars, eroding profit margins for locally-focused companies in robotics and chips.
- •Export-oriented Chinese AI firms are thriving on surging global demand for AI infrastructure like data centers, with companies like Zhongji Innolight Co and Eoptolink Technology Inc seeing stock rallies of around 50% this year.
- •The strong performance of global AI players like Nvidia Corp and Meta Platforms indicates robust international demand for semiconductors and computing power, fueling the gains of Chinese exporters.
- •While some observers still see value in China's AI localization trade due to geopolitical uncertainties, others argue that intense domestic competition will continue to plague domestically oriented AI firms, making global growth a key differentiator.
Key Questions Answered
A Bloomberg gauge tracking 30 Chinese tech stocks with high overseas revenue exposure has returned 36% this year, while firms dependent on local sales gained only 9% due to fierce domestic competition and a price war.
Optical component makers Zhongji Innolight Co and Eoptolink Technology Inc are major winners, deriving over 90% of their revenues overseas with both stocks rallying around 50% this year.
Domestically-focused firms have faced declining share prices, with Moore Threads Technology down about 25%, SenseTime Group dropping over 40%, and Kuaishou Technology falling around 5% this year.
