Goldman Sachs finds Chinese exporters rely on more than low prices abroad

Goldman Sachs' Greater China equity research team analyzed a cross-section of 11 industries and 40 companies to test the assumption that Chinese exporters succeed by undercutting rivals. Findings reveal that new Chinese products usually debut with a discount of about 30% versus established competitors, but prices often climb in subsequent years as quality and features improve. The discount remains relatively stable for sectors like electric vehicles, which still sell about 20% cheaper than comparable global models.

In contrast, robot vacuum cleaners arrived in the U.S. with a 40% discount and now sell at a roughly 60% premium after continuous innovation. The bank argues that price cuts are typically initiated later by firms that have lost market share, not by the Chinese entrants themselves. Gains are fastest in modular, consumer-facing, high-growth markets, while progress is slower in mature B2B sectors where trust and service networks matter more.