(Another) Postcard from Shanghai & Pet Fair Asia 2025

I swear I didn’t choose Shanghai (again) on purpose. It just happens that many of the things (and people) that interest me are here. But what a pleasure it is to be back! Even in 38-40 degrees, the city feels great. Clean, smooth, and surprisingly quiet thanks to electric vehicles that glide through heavy traffic without a sound.

The trendy districts like Jing’an or Nanjing Road are as busy as ever, filled with Chinese tourists enjoying their last holidays before the school year begins.

I inevitably had the typical conversation with European friends about how China compares to Europe. Of course, we are all biased – we all chose to live here. Yet the stories are strangely similar: a parent needing urgent treatment but waiting six months for an appointment; a train delayed by a bomb scare; friends who no longer go out at night because they don’t feel safe after 5 p.m. Funny, or actually not so much.

It’s my third time in Shanghai in two years, and the city felt as lively as ever. Streets, restaurants, and bars were crowded from Wednesday to Sunday (the duration of my trip).

I was here to attend Pet Fair Asia, as part of a series of articles I’m writing with a friend. A few things struck me:

• The scale. 310,000 m², over 2,600 exhibitors, across 25 halls. I don’t think I’ve ever seen such a vast exhibition space. Compared to the AI fair in Hong Kong I attended earlier this year, the pet industry looks far more flourishing.
• The crowds. More than 500,000 people attended.
• The sameness. Almost identical products everywhere – accessories, clothes, dry and wet food, cat litter, supplements…. Differentiation is minimal; competition is mostly on price (?)
• The language gap. Despite being called “international,” the level of English was very low. It reinforced my belief that speaking Chinese remains a real edge, even today and even with AI.
• The lack of Westerners. Outside of Asia, I could count the foreigners on one hand.

Walking through those halls made me reflect on the global value chain. At a time when everyone talks about deglobalization and tariffs, I wondered how that will affect the so-called “factory of the world.”

The size and number of players at the fair showed me how dependent we still are on China. Relocating entire industries back home feels unrealistic. China holds decades of accumulated know-how. I asked one manufacturer: “What happens if a machine stops working in Europe or the US?” He replied: “We send a Chinese team from here, or from the local branch, which is also staffed by Chinese.”

So how long would it take to transform the entire value chain from Chinese to local? All the expertise we (westerners) gave up cannot be rebuilt in a year or two, it could take decades! China spent 20–30 years building this. If we tried, maybe we could do it twice that time… assuming no strikes in between (special mention to my dear nation).

Yes, some production is shifting to places like Vietnam. But eventually the same issue will arise. This is all about power and balance. Tariffs or not, when machines stop and factories grind to a halt, leaders will have no choice but to call the Chinese (or the people who have the knowledge) to fix them.

The Chinese are rich, educated in the world’s best universities, but one thing is clear: they always serve their nation first. Even second- or third-generation overseas Chinese remain loyal to their origins. China has built an army and spread it across the world, quietly but steadily taking market after market.

No wonder I’m learning Mandarin. I’m highly bullish on China as a dominant global force. It doesn’t mean I invest in their equities (yet), but I believe they will remain very, very strong in the decades ahead. Growth or not, they’re here to stay.

One plastic producer showed me her product samples. It struck me that almost every product we touch is linked to China somehow. She explained that Europe is mainly served by OEMs in Türkiye, Germany, or elsewhere. Proof that not everything is made in China anymore, but also confirmation that full relocation is nearly impossible today. Doing so would be highly inflationary. And considering the refinancing needs of our countries, it seems very unlikely they will encourage such a massive shift.

You know how I like to look beyond numbers, reports, or headlines. To me, this whole idea of deglobalization feels like smoke and mirrors meant to distract, to create anxiety, to keep people compliant with their daily grind. I’ll be publishing a report on this soon.

One thing is certain: I’ll never look at a shop the same way again. Every object we touch as consumers comes from somewhere, and seeing them displayed in Shanghai’s exhibition halls made me realize how little I questioned that before.

Thank you, Shanghai. See you soon.