In The Birth of Korean Cool, Euny Hong argues that Gangnam Style was more than just a viral hit—it was a watershed moment that cemented South Korea’s status as a major cultural exporter. The song played a pivotal role in the global rise of "Korean Cool," serving as a breakthrough for South Korea’s soft power. Could the launch of DeepSeek, a cutting-edge Chinese AI, become a similarly defining moment for "Chinese Cool"? If DeepSeek achieves global success against Western AI, it could have a profound impact on domestic consumption in China, much like Korea's experience with Gangnam Style.
A surge in national pride could drive increased demand for Chinese video games, music, film, fashion, and technology as consumers seek to engage more with their own cultural exports. Industries such as beauty, entertainment, and luxury goods may thrive as domestic brands align with China’s emerging global identity. Government investment in soft power and cultural industries could further stimulate local creativity, strengthening domestic content consumption. If DeepSeek captures international attention, it may spark a cultural shift, encouraging Chinese consumers to embrace and amplify their own creative industries on a larger scale.
What the Markets Have Been Missing: The Rise of Chinese Cool Has Already Begun
Cultural shifts are often hard to foresee because we tend to view the world through the lens of past experiences. For instance, who could have predicted that Samsung, once mocked as “Sam-Suck” for its unreliable products, would one day become a global symbol of innovation and quality?
Similarly, many in the developed world still associate “Made in China” with low-cost, low-quality, mass-produced goods. However, Chinese consumers have viewed local products as technically and technologically superior for at least a decade. In an ethnographic study conducted in the fall of 2023, we found that Chinese brands had not only won over their domestic consumers but had also become symbols of aspiration and pride.
By 2015, Chinese consumers had already recognized their smartphones as technologically superior[1], but they still considered Apple the more aspirational brand. By 2023, however, we found a significant shift. Brands like Huawei were seen not just as competitive but as superior and more desirable. This was brought home to us when we saw the long queues of people hoping to get their hands on Huawei’s new Mate 60. For these consumers, the phone was not just a piece of technology; it was a symbol of national pride and innovation. Chinese products were no longer just good value for money—they had become markers of desirability and status.
Cultural Exports Spreading to Other Sectors
This shift was not limited to technology. Among our interlocutors, we found a combination of national pride and confidence in Chinese innovation that had transformed their perception of Chinese products. What were once seen as cheap local options were now viewed as cutting-edge and superior to international alternatives across a wide range of industries.
Jian, a man in his early forties from Shanghai, dedicated an entire room in his small flat to his collection of trainers. While his collection included international brands from his youth, such as the yellow Onitsuka Tigers worn by Uma Thurman in Kill Bill, his newest additions were Chinese brands. In Jian’s view, these brands were more innovative and stylish.
...those born before 2000 remembered a time when China produced low-quality goods, but those born after 2000 had only experienced China as an innovator.
He explained that there was a generational divide in attitudes: those born before 2000 remembered a time when China produced low-quality goods, but those born after 2000 had only experienced China as an innovator. This younger generation wants China to gain the respect it deserves on the global stage.
The Beginning of Chinese Cool: Hidden Shifts in Advertising
During previous ethnographic studies, we noticed that advertising billboards in China often featured Western lifestyles to create an association with success, modernity, and prosperity. By showcasing Western imagery, advertisers tapped into the aspirational desires of local consumers who associated these images with a higher standard of living or social status. However, this trend is beginning to change.
In our latest trip, in 2023, we were surprised by the Chagee bubble tea aesthetics. Around the shop, we observed the use of modern Chinese imagery to celebrate and promote Chinese culture. This approach resonated with younger respondents in our study, who took pride in their heritage and sought products that were both culturally meaningful and trendy.
... creates a positive feedback loop, driving demand for Chinese cultural exports back into domestic markets.
In a world of rising global interest in Chinese culture—from fashion to food—the use of modern Chinese imagery taps into this trend, making it appealing not only to domestic audiences but also to international ones. This, in turn, creates a positive feedback loop, driving demand for Chinese cultural exports back into domestic markets.
The Evidence of Rising Chinese Soft Power Is Everywhere
Until the release of the video game Black Myth: Wukong in the summer of 2024, the common perception was that China dominated in mobile games but could not compete in creating blockbuster video games. These high-budget, AAA titles require significant investment and face challenges such as software piracy and weak copyright protection.
... the success of Black Myth: Wukong shattered these assumptions
However, the success of Black Myth: Wukong shattered these assumptions. The game’s stunning visuals, engaging gameplay, and faithful adaptation of the Chinese literary classic Journey to the West reaffirmed the desirability of Chinese content and became a source of national pride.
Similarly, the animated film Ne Zha 2 surpassed all expectations to become the first non-Hollywood film to exceed USD1billion at the box office. As of the time of writing it had reached USD 1.8bn in global box office receipts, making it the highest-grossing film of the year. These successes are not isolated incidents but part of a broader trend of rising Chinese soft power.
When the US Shifts to Hard Power, China Fills the Vacuum with Soft Power
Hard power refers to a country’s ability to influence others through military might or economic coercion. However, what made the world embrace American Levi’s jeans and Nike trainers was soft power—the intangible ability to shape perceptions and win influence through cultural appeal. People wanted the desirable image by linking them to icons like James Dean (Levi’s) and Michael Jordan (Nike).
At a time when the US is increasingly relying on hard power, the rise of "Chinese Cool" is reshaping consumption patterns not only in China but around the world.
At a time when the US is increasingly relying on hard power, the rise of "Chinese Cool" is reshaping consumption patterns not only in China but around the world. As Chinese brands and cultural products gain global traction, they are redefining what it means to be "Made in China." No longer just a label for mass-produced goods, it is becoming a symbol of innovation, quality, and cultural richness. The success of DeepSeek could be the next chapter in this story, marking China’s Gangnam Style moment and solidifying its place as a global cultural powerhouse.
Trinetra Investment Management disclaimer: This material has been prepared by Trinetra Investment Management LLP (“Trinetra”) for information purposes only and it is not intended to be relied upon as a forecast or research. While the information herein is considered to be correct, no representation or warranty can be given on the ultimate accuracy or completeness of such information.
Unless otherwise specified, all views expressed are those of Trinetra. These views reflect current economic and market conditions, which are subject to change.
This material, or any views or opinions expressed herein, does not amount to an investment advice nor does it constitute a solicitation or a recommendation to buy, sell or invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy.
Kommentare