China Eyes Long-Term Tech Investment Amid Trade Risks

China’s economy is proving resilient and Beijing’s patient, long-term strategy—centered on tech, supply-chain resilience and an “AI+” industrial focus—is bolstering investor sentiment and could help insulate Chinese equities from U.S. tariffs and export controls. The State Administration of Foreign Exchange (SAFE) and its quota management remain a key lever: changes to foreign-investment allocations can spur A-share and ETF rallies (e.g., $ASHR) and ripple into broader risk markets, including crypto, via institutional flows. Market participants point to potential catalysts such as Fed easing and commodity moves like rising gold, alongside domestic AI breakthroughs (for example, DeepSeek), drawing longer-term allocations into Chinese tech and industrial plays. Xi Jinping’s early, multi-decade planning—exemplified by development efforts in Xiamen—illustrates the strategic governance and infrastructure push underpinning policy support for these sectors. Together, these factors create upside potential for Chinese assets while leaving persistent event-driven volatility as quota decisions, domestic policy and U.S.–China dynamics continue to drive risk.