In APEC host Shenzhen, China’s next-gen startups still bank on foreign buyers
SPY•Many Shenzhen startups are doubling down on products for wealthier overseas customers despite trade barriers and weak domestic demand. At incubator InnoX, about 80% of projects target foreign buyers; Shenzhen exports rose 18.5% from January to September, while retail sales grew 2.3%.
1. Overseas buyers remain the focus
As Shenzhen hosts the APEC forum, many of its startups are continuing to target wealthier overseas consumers, despite mounting trade barriers. InnoX co-founder Carol Yu said about 80% of projects at the incubator’s more than 120 startups are aimed at foreign customers, where consumers have greater ability and willingness to pay.
2. Exports outpace retail sales
Shenzhen exports rose 18.5% from January to September, while retail sales grew 2.3%, below the municipal government’s target. Founders and analysts cited weak domestic demand, price competition and constrained consumer spending as reasons businesses are looking overseas.
3. State support and trade barriers
InnoX was established in 2021 under a Shenzhen city plan and provides founders with prototyping facilities, supplier introductions and access to overseas trade shows. State-backed projects in Liuxiandong total more than 60 billion yuan ($8.7 billion). Tariffs have also prompted some companies to shift production: e-cargo-bike maker Tarran moved frame, battery and controller production to Southeast Asia, while keeping smart components and most raw materials sourced from China.
