“China Shock 3.0”: Is It Soft Power After EV, AI, Biotech?

The mythic magic behind the meteoric rise of Laopu Gold

The term "China Shock," coined by economists David H. Autor, David Dorn, and Gordon H. Hanson in 2016, refers to a surge of Chinese imports in the 2000s that eliminated more than two million American jobs. Now, in 2025, they warn of a "China Shock 2.0," a new wave of disruption led by electric vehicles (EVs), clean energy, artificial intelligence (AI), and biotechnology, which they predict will create a huge upheaval for the U.S. economy and global trade.

"Shock," in this context, connotes negativity—a word born of fear that the U.S. and its Western allies will lose their leadership in the areas they once dominated. Some even suggest that China is "stealing" the future. While I am not here to appease those economists, I agree with Henry Huiyao Wang’s perspective in the South China Morning Post that this "shock" is a misinterpretation. Instead of a "destabilizer," China is playing the role of a "builder" by leading innovation and creating entirely new systems and industries.

As a trend and culture decoder, I'm always looking ahead. So, what will be the next big thing from China after "Shock 2.0"? I believe that after EVs, AI, and biotech, the next wave will not be a threat, but a propeller that builds a better future for everyone. This insight brought me back to a topic I lightly touched on in my previous article, "Beyond Guochao: How China’s Second Cultural Wave Is Reshaping Global Branding." In that piece, I discussed China's ascending soft power, from Labubu and vertical dramas to the humble century egg. Now, with the meteoric rise of the Chinese-born luxury brand, Laopu Gold, I'm revisiting and weighing the possibility that soft power will be the next "shock" from China.

As Labubu stole the spotlight from the Birkin bag as a charm, Laopu Gold is now rivaling the glamour of brands like Cartier and Van Cleef & Arpels in an industry that has long been dominated by Western brands with powerful storytelling, heritage, and craftsmanship. The shares of Laopu Gold have soared by more than 2,000% since their listing last year, and CNBC reports that its net profit is forecast to triple for the first half of 2025, with an increase between 279% and 288% year over year.

While Laopu Gold’s shares fell nearly 5% in late May, pouring cold water on extremely high expectations, the brand still performs strongly as a rising Chinese luxury darling, with consumers crowning it "the Hermès of gold.” (As a tradition, Chinese people love to crown a product, service, or brand with "the Hermès of..." to denote its premium price and exclusivity.) Last week, I went out of curiosity to queue in front of Laopu's store at the IFC of Lujiazui, Shanghai's financial center, to witness this phenomenon firsthand.

It took me about 30 minutes in a long queue before I was allowed to enter, which is a rare occurrence, especially given that many Chinese high-net-worth individuals are shifting their luxury spending from products to experiences. This shift is further fueled by a general sense of downgrading consumption. During the wait, we were generously treated to premium Evian bottled water and Godiva chocolate. Once inside, a personal salesperson was assigned to guide me through each piece. I spent the next 30 minutes trying on some of their best-selling pieces from Xiaohongshu (Red Note).

While I was captivated by Laopu’s exquisitely beautiful gold jewelry and its so-called "Heritage Gold Craftsmanship," which blends modern and Western concepts with traditional Chinese cultural elements, I was fascinated to overhear comments from a young couple in their 20s next to me. They were having a lively conversation, and even a little argument, about which design was better and which piece was a better fit. What surprised me was that the young man was more persuasive than his girlfriend, providing honest opinions on size, design, craftsmanship, and aesthetics, as if he were a true connoisseur.

Based on this on-the-ground observation, it seems true that Laopu’s ascent is a secular trend, not a speculative flash. While other global luxury brands are seeing a decline in their global sales, with some, like Kering Group, experiencing a 12% drop last year, I aim to unravel the mystery of Laopu Gold's meteoric rise and its powerful magic.

Mythic Secret of Laopu Gold’s Success: The core of Laopu Gold’s success lies in its ability to address a deep-seated desire for certainty and comfort in an age of immense uncertainty. The cultural connotations of Laopu’s jewelry and design concepts offer a spiritual connection deeply rooted in Chinese culture and philosophy, thus alleviating a collective sense of social anxiety.

It's a striking cultural phenomenon that Chinese people are more obsessed with "xuánxué" (玄学) than ever before. This field of study, which seeks to harness supernatural and mysterious forces to predict the future or change one's destiny, is especially popular with the younger generation. I've even joked that xuánxué is the new Marxism in today's China. When faced with a profound sense of loss as the booming economy falters, many Chinese people are resorting to a "religion" deeply ingrained in their cultural DNA for spiritual consolation. Savvy luxury brands like Laopu Gold have been astute enough to recognize this spiritual void and have successfully turned it into commercial prosperity.

The magic of Laopu Gold consists of three key elements:

• Motifs associated with profound Chinese philosophy.

• Gold’s cultural weight in Chinese tradition.

• Heritage Gold Craftsmanship.

To better understand its magic, let's dive deep, starting with Laopu’s classic jewelry design motifs. The following analyses were quoted from @Designest on Xiaohongshu:

• Butterfly: The wings of a butterfly embody the philosophy of a free and unfettered spirit from the ancient philosopher Zhuangzi, carrying a blessing for abundant happiness, wealth, and good fortune.

• Gourd: The gourd's belly holds the blessing of "continuous generations" from the classic Book of Songs, with an added auspicious meaning of "happiness and prosperity" (fú lù).

• Vajra: The vajra's (dorje) sharp edges conceal the indomitable wisdom and strength bestowed by Buddhism.

Laopu Gold Classic Items (Credit: Xiaohongshu)

Laopu Gold: Butterfly (Credit: Laopu Gold)

 Laopu Gold: Gourd (Credit: Xiaohongshu)

Laopu Gold: Vajra (Credit: Xiaohongshu)

It’s no wonder that @Designest commented, “Each piece of jewelry from Laopu Gold is a brilliant miniature of 5,000 years of Chinese civilization.”

In contrast, while classic and well-loved, the profound cultural and mystical meanings of global luxury pieces—such as Cartier's Panther, Van Cleef & Arpels' Alhambra, and Bvlgari's Serpenti—cannot be fully absorbed and felt as deeply by a Chinese audience as the motifs of Laopu's butterfly, gourd, and vajra.

We also cannot underestimate the importance of gold. In Chinese tradition, gold is more than just an investment; it's a powerful symbol of status and good fortune. It’s the only precious metal that can truly capture the spirit of an occasion in Chinese culture and tradition, whether it's the wedding promise of "love as precious as gold" (qíng bǐ jīn jiān) or the celebratory wishes of "wealth and auspiciousness" (fù guì jí xiáng) for the Spring Festival. With the value of diamonds on the decline, gold will undoubtedly emerge as the top choice for financial investment and cherished family heirlooms.

Magic Recipe: powerfully prove that “seeing is believing” by bringing the thousands of years of Chinese civilization to life.

Finally, Laopu masterfully brings this wonder of wisdom and abundance of auspiciousness to life by adopting its exclusive and highly sophisticated craftsmanship—Heritage Gold Craftsmanship. This, accompanied by its immaculate service, vividly proves that “seeing is believing” by allowing customers to carry this cultural weight in their palms or on their necks.

The Road Ahead

Some analysts are quick to declare that Laopu Gold may become the first true Chinese luxury brand capable of challenging global jewelry giants like Cartier or Bulgari. Yet I hold this prediction with caution, for the following reasons:

For cultural adaptation: The task of transporting these culturally and mystically rich design motifs to a global audience is immense. How will a non-Chinese customer resonate with the philosophical meaning of a gourd or the spiritual significance of the Vajra? This magic, so potent in its home market, will need to be reinterpreted. It will require time, strategy, and impeccable execution to see if this narrative can resonate on a global scale.

For scenarios: Laopu Gold’s meteoric rise is a fascinating byproduct of its time, flourishing under China’s unique social and economic environment. Its success is a testament to its ability to fill a void and soothe a collective anxiety. Whether this strategy works outside of China is the ultimate test.

To wrap it up, I choose to rephrase Laopu's rise not as an immediate threat to the West, but as the start of a new era for Chinese luxury brands going global. It took Cartier 177 years of consistent effort, with the unwavering endorsements of global royalty and celebrities, to become a true jewelry icon. Laopu Gold, an ascending brand born in 2016, is just taking its first step—a small but incredibly meaningful step that opens a new chapter in the story of luxury. Its journey is a massive bet, and it is one well worth watching.