The key facts

  • DJI and Insta360 account for more than 90% of global compact camera sales; GoPro was rescued from bankruptcy in September
  • Chinese automakers sold almost two-thirds of all electric vehicles last year
  • More than 90% of Europeans do not trust Chinese tech companies with their data; the US and EU are introducing tariffs and restrictions

From action cameras to electric cars: the Chinese are overtaking Western brands

The story of GoPro has become a symbol of change in the consumer electronics market. In 2015, the American company was the leader: about 6.6 million devices sold and more than 70% of the action camera market. Today, according to Deutsche Welle, the industry pioneer is fighting for survival — in September it was rescued from bankruptcy. Its main competitors have become the Chinese DJI (which entered the market in 2019) and Insta360 (2021), which now account for more than 90% of global compact camera sales. User Alexander Hannemann told DW that about two years ago he switched from GoPro to Insta360, noting better shooting quality even at speeds of around 80 km/h.

The scale of the phenomenon

The GoPro case is not an isolated one. Since roughly 2010, DW notes, Chinese brands have not only caught up with but surpassed Western competitors in consumer electronics — from smart TVs to robot vacuums. Canadian entrepreneur Chris Pereira, who has worked in China for more than 20 years, says Chinese products remain affordable but have become high-quality; by his estimate, more than half of new consumer tech products worldwide are now supplied by Chinese companies. Last year, Chinese automakers, including BYD and Xpeng, sold almost two-thirds of all electric vehicles in the world, overtaking Tesla. In the robot vacuum market, Chinese brands dominate, while the American pioneer iRobot struggles to compete.

Reasons for success

Pereira, whose consulting company iMpact helps Chinese firms expand abroad, links the success to fierce domestic competition in Shenzhen, Hangzhou and Shanghai, highly integrated supply chains, and a business culture that allows rapid innovation. Other factors include industrial automation, the use of AI in manufacturing, responsive regulators and relatively cheap labor, which provide lower costs and faster innovation cycles. Joey Chen, founder of the American startup Prolo Ring, noted that production of his products is almost entirely concentrated in Shenzhen: 'The supply chain in Shenzhen is practically unavoidable for reducing costs and rapid product development.'

The trust and security problem

Despite the popularity of Chinese technology, concerns persist. According to a survey cited by DW, more than 90% of Europeans do not trust Chinese technology companies with their data, and about 80% do not trust American ones; Germans expressed the greatest distrust. German travel blogger Nadine, who uses DJI and Insta360 products, said that at home she uses a robot vacuum only from a German company — for reasons of compliance of data with German standards, citing cases of hacking of cameras and microphones of robot vacuums. Pereira notes that Chinese companies abroad pay a 'trust premium' and must be especially competitive in product and price. Chinese companies declare compliance with EU data protection standards, however, as DW notes, US and PRC laws may require the transfer of data to authorities, and German officials point to limited control over the transfer of data from European servers abroad. Chinese companies are also being scrutinized over espionage risks, including regarding connected devices such as electric vehicles.

Trade barriers and the West's response

Against the backdrop of security concerns and the trade deficit, the US and a number of other Western countries are introducing tariffs, blacklists and strict requirements for Chinese companies. At the end of July, the Trump administration banned the import of humanoid robots produced outside the US. A representative of the Chinese robot manufacturer Primebot told DW that all Chinese companies feel the restrictions: 'We can look for cooperation with a local American company. Another possible option is to build a factory there.' The EU and European countries are also considering new tariffs. Pereira predicts two trends: the relocation of production abroad — BYD, according to the article, will open its first passenger car plant in Europe in Hungary later this year — and a shift of focus to the premium segment, where Chinese brands will compete directly with Western ones. British IT hardware specialist Kaz Merchant believes that Western small companies need to look for geographic niches or partnerships with Chinese firms. Pereira, meanwhile, calls the slowness of regulators Europe's key problem: 'Chinese regulators say very clearly and quickly what can be done. If you wait weeks for an answer, you lose business.'