Where Chinese Exports Are Gaining the Most Market Share

In this Goldman Sachs Exchanges video, Trina Chen, co-head of Greater China Equity Research, discusses where Chinese exports are gaining market share, with a focus on emerging markets. She covers pricing and deflation, incumbent responses, vulnerable regions and sectors, and how much of the shift is reflected in stock prices.

1. Goldman Sachs Research analysis of more than 10 sectors finds Chinese product market share has probably reached 24% in emerging markets.
2. Chinese exports are not always cheaper; prices can rise over time as product quality improves and the price gap with local products closes.
3. Domestic stock prices tend to respond rapidly when companies lose market share; market capitalization can shrink by 50% or more when Chinese competition causes revenue to fall 10%-15%.
4. The discussion covers vulnerable regions and sectors, incumbent strategy and expansion through disruptive innovation.