I’ve recently returned from my trip to China, visiting Suzhou, Shanghai, and Hangzhou. The journey took me down memory lane—my first visit to Suzhou and Shanghai was in late 2008. That 16-year gap gave me a unique lens to measure just how dramatically China has evolved.
Change is in The Air
The first thing that struck me wasn’t the gleaming skyscrapers or bustling streets—it was something you can’t see but definitely feel: the air quality.
Not only was it significantly better than Shanghai in 2008, but it was noticeably cleaner than my experiences in other major cities abroad.
This improvement reflects China’s evolution from a “growth at all costs” manufacturing hub to a nation balancing economic progress with quality of life.
The streets were immaculately clean. No scammers in sight. No need to guard against pickpockets. I even observed people using their valuables to reserve seats—similar to Singapore (though I don’t encourage this practice).
For such a transformation to occur, two factors must work in harmony: competent law enforcement and improved living standards.
My sense is that China’s tech ecosystem plays a crucial role in supporting law enforcement—everything leaves a digital footprint that can be traced, making potential perpetrators think twice.
When a friend left his bag in a cab on a separate trip, police identified the driver and recovered it within an hour. In most countries, you’d get a police report for insurance and a shrug.
Meanwhile, China’s rapid economic growth has lifted many out of poverty. Where there are jobs and asset ownership, crime rates decline.
The Retail Reality Check
My second revelation came in the shopping districts. With the exception of Apple and Lululemon, once-dominant Western stores—Nike, Starbucks, and Under Armour—stood nearly empty.
This isn’t about consumers growing bored with Western offerings. Starbucks continues performing remarkably well in Japan, Bangkok, and Singapore despite nearly three decades of operations. The reality? Competition in China is ruthless.
There’s no room for businesses to rest on their laurels. S-class management isn’t an option—it’s a requirement. For every Starbucks, multiple local alternatives offer comparable or superior experiences. When you’re earning substantial margins, you’d better reinvest in strengthening your moat through enhanced in-store experiences, membership ecosystems, or constant product innovation.
This serves as a reminder for my own investment in Lululemon. Their strong performance in China isn’t guaranteed—it must be continually earned. Currently, Lululemon’s China team operates with significant autonomy from North America, with freedom to customize products and store designs for the domestic market. This differs from their cookie-cutter approach in North America, and they’re crushing it in China.
I hope it stays that way. In fact, I hope the North American team studies their China operation to bring insights back home. Regardless, this requires monitoring—the brutal competition facing any business in China is simply reality.
From Imitation to Innovation
The third transformation was perhaps most striking: China has evolved from producing cheap knockoffs to creating exceptional products.
Beyond high-quality EVs like BYD, there’s DJI dominating consumer drones and handheld vlogging cameras, plus mobile phones like the Vivo X200 Ultra and OPPO Find X8 Ultra—phenomenal devices by any standard.
As a longtime Samsung user, I was impressed to see these Chinese flagship phones outperform the Samsung S25 Ultra on almost every specification—at a significantly lower price point. The engineering quality is undeniable.
Looking Ahead
I’ll be visiting China again during autumn, this time to Chengdu and Jiuzhai Valley National Park. If you have any recommendations or tips, send them over!
Till next time,
Thomas
P.S. I met a reader in Hangzhou who—with admirable honesty—mentioned I don’t look like the photos on my blog and should refresh them. Perhaps the 2022 bear market aged me, or the 2023 bull market fattened me up. Either way, my portfolio isn’t the only thing that’s been through some dramatic swings. Here’s a fresh photo of me in Suzhou, courtesy of the Vivo X200 Ultra.
Thank you Thomas for sharing your experiences. Is good to know the current conditions in China in all aspects, whether is air quality, consumerism changes or general expectations from the local community. What are your views on the overseas brands currently operating in China? It looks like their businesses isn’t doing well especially the luxury chains.
Do share more, looking forward to your next article.
Thank you.
Hi Grace! Indeed, luxury brands isn’t doing that well now. And I think luxury spending in China is down due to two factors:
1) Weak economy, low business activities. The last time we saw such a dip was from its corruption crackdown which stemmed gifting of such luxury products. Now I think the weak business activities also has such an impact of lower gifting. And of course, with weaker sentiments, consumers are less likely to buy as well.
2) Then there’s a shifting trend of Chinese consumers wanting to quiet brag. Instead of wearing extremely loud luxurious products, which they sometimes sees as distasteful/trying too hard by the younger population, they’re shifting to quieter brands (but expensive) such as Lululemon.