China’s Next Innovation Wave - From Software to Hardware to Cultural IP
In April 2010, I visited China for the first time to attend the country’s largest trade fair — the Canton Fair — held twice a year in Guangzhou, Guangdong province.
In the weeks before my trip, I researched whatever I could find online, even watching the Richard Gere film Red Corner (which, in hindsight, was hardly the best mood-setter). At that time, reliable information about China on the internet was sparse. Most reviews came from TripAdvisor, and rather than answers, I was left with more doubts:
- What will it be like?
- Will I find familiar food?
- Will I be able to communicate my needs?
When I finally boarded the direct train from Hong Kong to Guangzhou, those questions — along with the movie’s plot — were still running through my mind.
First Impressions vs. Reality
Clearing immigration was tense, but what followed was an amazing journey. The people I met were friendly, business-oriented, and resourceful. While language barriers existed, young college students and skilled professionals who could speak English made it surprisingly easy for foreign visitors to do business.
Back then, China was the “factory of the world” — famous for low-cost manufacturing, producing everything from tiny pins to massive cranes. Name it, and they could make it.
Today, in 2025, it’s a global innovation powerhouse — far beyond just a source of cheap goods, now driving world-class innovation. This amazing transformation is nothing short of remarkable.
Today, China has 7–10 globally recognized brands in the making, spanning software, hardware, cultural IP, and more. Projects that might take years in the West are completed in months, and the country is connecting even its most remote regions with world-class infrastructure.
Over the past few days, I’ve been tracking innovation trends in China — and I’m struck by how quickly the landscape continues to shift. Three distinct waves stand out.
Wave 1: Software Dominance
We saw the meteoric rise of companies like Bytedance, with TikTok and its e-commerce arm, TikTok Shop, sweeping through Southeast Asia. Even with TikTok banned in countries like India, its influence is undeniable. Concerns over data security — from user location tracking to information sharing — pushed some governments to restrict access.
Interestingly, TikTok now appears to be building a US-centric app to address these issues, and I wouldn’t be surprised if they follow a similar strategy for other banned markets like India.
Wave 2: Hardware Leadership
Then came the hardware surge — Chinese automakers like BYD have been making bold moves, capturing market share globally. BYD’s cars are recognized for innovative features and strong design. Unlike TikTok, they haven’t faced widespread security scrutiny — though vehicle tracking technology could become a future flashpoint if geopolitical concerns intensify. There are many more such examples such as DJI and so on.
Wave 3: Cultural IP Goes Global
This summer, a new trend is impossible to ignore: the rise of China-made cultural IP.
One striking example is POP Mart’s Labubu character, which has become a phenomenon.
What started as a small initiative by a Hong Kong based artist, has now turned in to global sensation with POP Mart store gamifying the buying experience on social platforms like TikTok - with exclusive toy variants with a chance to buy blind boxes. The coveted Labubu dolls weren’t found easily for purchase; some of the lucky buyers are selling the Labubu’s for profit on other platforms.
What’s Next?
From software to hardware to cultural exports, China’s innovation story is evolving faster than ever.
The question is — what will the next wave be? AI-powered experiences? Digital Economy? Climate tech? Or perhaps a fusion of physical and digital culture that blurs the lines entirely?
💡 Your thoughts: Have you noticed similar trends in your region? Where do you see the next wave of Asian innovation coming from?
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Image / logo credits - POP MART / BYD / Tiktok