American companies are losing influence in China as geopolitical tensions, stronger domestic competitors and a growing disconnect with Chinese consumers erode a market that once offered rapid growth. Nike’s China business has shrunk 30% since 2021, while Starbucks and General Motors have also suffered significant declines. By contrast, Lululemon expects China growth of about 20% this year, Ralph Lauren reported 40% growth in its most recent quarter, and Kentucky Fried Chicken continues to perform well. Aaron Cheris, head of global retail practice at Bain & Company, said U.S. brands often fail to justify their price premiums, adapt quickly enough or build effective local distribution and marketing. The pressure extends beyond retail: General Motors’ regional earnings fell from about $2 billion annually in 2018 to losses in both 2024 and 2025, while Detroit’s Big Three saw their global market share decline from 21.4% in 2019 to an estimated 15.7% in 2025. New energy vehicles (battery- and hybrid-powered cars) accounted for 65.1% of new passenger-car sales in July, up from 54% a year earlier, adding to pressure on U.S. automakers.