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Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
BEIJING, Sept. 11 (Xinhua) — Walk into any Xiaomi store opened overseas this year, be it in Germany, Japan or the Republic of Korea, and you will find more than just the Chinese tech giant's flagship smartphones.
The shelves are lined with connected devices: wearables, smart TVs, robot vacuums, home appliances and electric scooters, all working in tandem to showcase an AI-powered smart living ecosystem – a shining example of the latest trend driving the global expansion of Chinese smart device brands.
Backed by robust supply chains and cutting-edge AI innovation, companies like Xiaomi, iFlytek, Lenovo, and Huawei have moved beyond competing solely on the price of their products. Today, they aim to become an integral part of the daily lives of global consumers, seamlessly integrating into living rooms and offices, and even the cars people will drive in the future.
“AI-enhanced capabilities and full ecosystem synergies are emerging as key trends driving the global expansion of Chinese smart device brands,” said Evan Kirchheimer, chief research officer at technology research and consultancy Omdia. “AI is fundamentally changing the way consumer electronics interact with users — and with each other.”
Xiaomi’s global journey perfectly illustrates this shift, according to Zeng Xuezhong, Xiaomi’s vice president and president of international business. In its early days, the company focused almost exclusively on smartphones to enter international markets. But since 2018, it has gradually expanded its product lines to include other smart devices, with the goal of creating a product ecosystem characterized by the integration of smartphones and the AI of Things (AIoT).
This year, Xiaomi began its first major expansion into overseas markets for large home appliances, entering Southeast Asian countries. It also announced plans to export electric vehicles by 2027.
“Our goal is to gradually build a global human-car-home ecosystem where smartphones, cars and home devices are seamlessly connected,” Zeng Xuezhong said. “This will be a key pillar to help strengthen our next phase of globalization with the characteristic feature of exporting business models.”
Xiaomi is far from alone in this AI- and ecosystem-driven global expansion. Leading Chinese AI company iFlytek reported in its H1 2025 report that overseas sales of its AI hardware more than tripled year-on-year, with its AI laptops gaining notable favor with consumers in Japan and the Republic of Korea.
iFlytek Chairman Liu Qingfeng identified three growth drivers for the company's global expansion: overseas launch of large AI models, integrated AI hardware and software products, and globalization of the ecosystem.
Industry data from Omdia – formerly Canalys – paints a promising picture for the sector. Shipments of AI-powered consumer electronics, including AI phones, AI PCs, and AI headphones, are forecast to exceed 500 million units in 2025, accounting for 40 percent of all consumer electronics sold worldwide. Chinese brands are already standing out in these fast-growing categories.
Omdia data shows that in Q2 2025, international shipments of AI-equipped smartphones from Chinese brands increased by 195 percent year-on-year, with Xiaomi, Honor, and Oppo leading the way. In the AI PC space, 30 percent of all global PC shipments in Q2 were AI-enabled PCs, with Chinese tech company Lenovo taking a 21 percent share of the segment.
E. Kirchheimer noted that the success of Chinese brands is due to two key factors. First, their complete supply chains and large-scale production, which allowed them to respond quickly to global demand while keeping production costs competitive and delivering on time. Second, their impressive investments in innovation – especially in AI, system-level synergies and intelligent sensor technologies.
The global expansion is also fueled by policy support. In a recently released directive, the Chinese government set clear targets for AI adoption: by 2027, the adoption rate of intelligent terminals and next-generation intelligent assistants should exceed 70 percent, and by 2030, this figure should rise to over 90 percent, as AI becomes the cornerstone of China’s high-quality economic development.
To take advantage of these opportunities, Kirchheimer says market participants need to double down on innovation – releasing new products for niche markets and deepening the use of AI technologies in devices to continuously improve interactions between different devices and enhance the user experience.
“Chinese brands were once known for their affordability,” he said. “Now they are known for their innovation. Tomorrow they may be known for the ecosystems that make their devices indispensable.” -0-
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