Chinese AI exporters outperform domestic-market companies — The Japan Times
In China, technology companies that derive a significant share of their revenue from overseas markets are outperforming competitors focused on the domestic market amid intense price competition in artificial intelligence. A Bloomberg index tracking 30 Chinese technology companies with the largest share of overseas revenue has risen 36% since the start of 2026, while the indicator for companies more dependent on local sales has gained 9%.
Demand for AI infrastructure
As The Japan Times reports, citing Bloomberg, Beijing's drive to create a self-sufficient artificial intelligence ecosystem has intensified competition among local manufacturers. Price rivalry has reduced profitability in segments ranging from microchips to robotics. At the same time, companies supplying products abroad have benefited from growing global demand for AI infrastructure, including data centers.
Among the biggest beneficiaries of this demand are optical component makers Zhongji Innolight and Eoptolink Technology. More than 90% of their revenue is generated outside China, and the share prices of both companies have risen by about 50% since the start of the year.
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Pressure on local players
CLSA's head of research for Asia's telecommunications and internet sector, Elinor Leung, said that competition in China's domestic market is the main challenge for companies, while international sales provide higher margins. Bank of America strategists also said that many emerging-market-focused funds favor Chinese exporters linked to the US AI investment cycle.
Shares in Moore Threads Technology, which receives almost all of its sales in China, have fallen by about 25% since the start of the year. The shares of AI tools developer SenseTime Group, more than 90% of whose revenue comes from the domestic market, have declined by more than 40%. Shares in Kuaishou Technology, which also works with AI video and receives less than 5% of its revenue abroad, have lost about 51%.
At the same time, Morgan Stanley analysts consider AI sovereignty and semiconductor localization to be structural opportunities for the Chinese stock market. However, according to Bank of America's co-head of China equity research, Mati Zhao, domestic demand in a number of industries has already been met or there is excess supply, making the ability to export and expand in international markets an important advantage.
