Many business empires have been built on the idea that a trusted name justifies charging considerably more than it costs to produce. But decades after “Made in China” became synonymous with shoddy workmanship, Chinese companies are starting to challenge the notion that quality must come at a hefty premium. If they can succeed abroad, established rivals may no longer be able to command the higher prices they’ve long taken for granted.

The automobile industry is a conspicuous example, but the trend is gaining momentum in everything from high-end camera lenses to home appliances to luxury fashion, as my colleague Wes Kosova has written. With households in China reluctant to spend following the collapse of the property sector five years ago, domestic retailers have been forced to offer more for less.

Whether these brands can replicate the overseas success of Chinese carmakers is an entirely different matter. The resulting price wars from the government’s decision to prick the real estate bubble have squeezed profit margins, and setting up shop abroad is expensive. When companies do, they inevitably have to charge higher prices, which could diminish the price gap — and their appeal — with Western labels.

Carmakers are building their reputation on a simple idea: all the extras at affordable prices. They are offering well-equipped, technically sophisticated models at prices that undercut entrenched names. While this has caused alarm among top trading partners like the European Union and Mexico, buyers coping with a cost-of-living crisis are hardly complaining.

In Canada, almost half of drivers who say they’re likely to buy an electric vehicle are waiting for Chinese options to arrive before taking the plunge, according to a survey published last month by Clean Energy Canada. Models from BYD Co., Chery Automobile Co., Geely Automobile Holdings Ltd. and Dongfeng Motor Corp. are expected to be available early next year. They are likely to sell for up to 15% cheaper than incumbent models but with higher specs and more features.

That combination of price and quality resonates with buyers in other sectors, even luxury, Christopher Zanardi-Landi, a consultant and the former head of Louis Vuitton’s China operations, told me. With a vast manufacturing base and the need to succeed overseas due to weak domestic spending, Brand China has the potential to produce global competitors in virtually every premium consumer category.

In photography, Light Lens Lab, based in eastern China, is well-known among shutterbugs for selling $1,500 lenses said to be nearly identical to vintage artisanal products from Germany’s Leica Camera AG that cost $25,000. Sneakerheads rave about $150 shoes from Shanghai-based Pane, which they say are comparable to $1,000 designer kicks. Cashmere label Icicle, known for its minimalist designs, sells coats for considerably less than those from Italy's Max Mara.

Even luxury goods, where heritage and prestige have traditionally given Western brands an edge, aren't immune. Five Chinese handbag labels including Songmont and Grotto saw their combined sales on online shopping platform Tmall grow 51% a year between 2021 and 2025, even as the site’s broader bags and luggage category contracted by 1% annually, according to Bernstein analyst Luca Solca.

It’s taken them 50 years to get to this point. After China opened to the world in the late 1970s, global manufacturers began to shift production there. Initially, it was to make low-end, mass-market goods. But as the factories took on ever more sophisticated contract work for Western companies, including the likes of Apple Inc., they developed the expertise that laid the foundations for the country’s manufacturing prowess.

Now, they are are increasingly testing their appeal abroad. Athletic-wear maker Anta Sports Products Ltd. opened its first American flagship store in Beverly Hills in February. Rival Li Ning Co. signed NBA superstar Stephen Curry in June with the intention of jointly establishing outlets in the US and China. Icicle, backed by Gucci owner Kering SA, has five locations overseas. Outdoor equipment maker Kailas debuted its first European store in Chamonix, France, over the summer.

Chinese companies have learned to deliver more for less at home where they have scale, but that doesn’t mean the formula will work in markets where there is more competition and entrenched marques have loyal followers. Setting up retail locations overseas is costly and will eat into already-slim profit margins. E-commerce offers a less expensive way to test demand and build name recognition before committing to a physical presence. And even though value has become an intrinsic part of the appeal, Chinese names have yet to evolve to the point where consumers seek them out regardless of price. Building that emotional connection with a brand will take time.

Whenever it's time to make any kind of major purchase these days, I wonder: Is there a Chinese option worth considering? Consumer goods of all kinds have long been made in China. Choosing, say, Xiaomi Corp. for my next set of home appliances could cut the bill in half.