Revolutionising Technology and Innovation
BYD and Xiaomi charging ahead!
We are witnessing a profound transformation in the Chinese economy—shifting from a model historically driven by construction and urban development to one increasingly powered by innovation, advanced manufacturing, and quality technology. At the heart of this shift is the private sector, which has emerged as the most dynamic force in the economy. Here, competition is fierce, and the rewards for success in this vast domestic market are significant.
Companies that thrive in China’s intensely competitive environment are often the ones that later succeed on the global stage. They benefit from world-class infrastructure, the most extensive and cost-efficient supply chains globally, and a deep pool of skilled engineers and talent. Two such companies that exemplify this are BYD and Xiaomi.
BYD has rapidly evolved into a global leader in the automotive industry, driven by its international expansion in electric vehicles and its relentless focus on innovation and quality. Its Super e-Platform battery, for instance, enables ultra-fast charging—delivering a 400km range with just a 5-minute charge, outpacing many developed-market peers. To support its next-generation EVs, BYD plans to roll out over 4,000 ultra-fast charging stations across China. As China has now become the world’s largest auto manufacturer and exporter, BYD stands as a powerful example of the country’s high-value, innovation-led manufacturing capability.
Xiaomi, meanwhile, is redefining what it means to be a technology leader. Its influence spans a vast ecosystem, from IoT-powered smart appliances and wearables to AI, robotics, electric vehicles, smartphones, and even semiconductor design. As the world’s second-largest smartphone maker, Xiaomi continues to set the pace in mobile innovation—most recently unveiling its proprietary 3nm XRING O1 chip. It is also investing billions in R&D to take on global giants like Apple and Tesla. Xiaomi’s strategic focus on integration, affordability, and technological self-reliance reinforces its position as a global innovation powerhouse. Its electric vehicles are gaining strong traction, with the SU7 already outselling the Tesla Model 3 in China—a milestone achievement among Chinese automakers.
Despite global trade tensions and market volatility, high-quality Chinese businesses are not only holding their ground but gaining market share and growing earnings. The rise of companies like BYD and Xiaomi underscores the significant technological progress being made in China today.
At Ox Capital, we are proud to invest in a number of Chinese innovative enterprises. We believe we own tomorrow’s global champions—businesses that are not being disrupted but are instead reshaping industries around the world.
At Ox Capital, we are focused on quality companies with long term growth which are available at inexpensive valuations across emerging markets. Current valuations are providing lots of interesting opportunities. Let us know if you would like to understand specifically where we are finding the opportunities!
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