China's Next Act

I recently returned from hosting Foord’s Orient Express investment tour through Singapore, Macau, Shenzhen and Shanghai. On the ground, China feels like a country that has outgrown old definitions. It is innovating, scaling and competing at a speed the rest of the world struggles to match.

SPEED AS A COMPETITIVE EDGE

Take Chagee, a modern tea-store chain that has opened 5 000 outlets in just two years. Its model — low franchise fees, fast payback, consistent quality — captures the essence of what locals call ‘China speed’. The ecosystem enables rapid scaling with minimal friction. It is a reminder that scale itself can be a source of innovation.

FACTORIES THAT BUILD THE FUTURE

China’s manufacturing strength has reached a new level. Electric vehicles and industrial robots can be assembled from domestically sourced components using modular supply chains. This means anyone with a good design can build a car or robot, quickly and cheaply. The result is relentless competition, but also extraordinary productivity gains.

EVERYDAY DIGITAL FINANCE

In China, cash and credit cards have largely disappeared. Almost every transaction — from taxis to market stalls — runs through WeChat Pay or Alipay. These homegrown platforms have built a frictionless payment system that makes Western networks look cumbersome by comparison. It shows how technology can reshape an entire economy when adoption is nearly universal.

TURNING HOTELS INTO BRANDS

Atour Hotels — a mid-range hotel chain — has discovered that selling comfort can be more profitable than providing it. With 1 800 hotels and plans for 3 000 more, Atour also sells branded bedding and homeware found in its hotels. Remarkably, almost half of its product customers have never stayed in one of its hotels. The company has turned its brand into a lifestyle — a sign of how China’s middle class is redefining consumption.

THE RISE OF LOCAL CHAMPIONS

Chinese consumers increasingly prefer domestic brands. This is not just because they are cheaper, but because they are better. Local companies now match or surpass global rivals in quality and design. From cars to cosmetics, shoppers are proud to buy local. The result is a thriving internal market that continues to expand, even as global demand slows.

WHY IT MATTERS FOR INVESTORS

For global investors, China’s transformation presents both challenge and opportunity. It remains the largest contributor to global growth and a source of industrial and technological leadership. Despite the headlines, the investment case is clear: the world’s largest economy cannot be ignored. Foord’s global funds provide measured, mandate-dependent exposure to this long-term story, balancing opportunity with disciplined risk management.