Western luxury falters in China
Western luxury brands have lost roughly $280 billion in value this year as Chinese consumers spend more on domestic products but less overall. Chinese producers are increasingly competing with Western challengers on price and quality as Beijing looks to shed the shoddy reputation of “made in China.” Chinese companies are gaining global market share in industries including high-precision lenses and pharmaceuticals, drawing interest from US and European investors, while a Council on Foreign Relations expert argued that similarity in the export baskets of China and the West could add to already high trade tensions.
Why it matters: The developments bear on trade tensions, because the cited expert argues that converging Chinese and Western export baskets could add to already high friction.