According to a CNBC article, China’s attempt to modernize the economy may face obstacles due to trade war talks. Such tensions are forcing China to rethink its economic strategy.
An executive at BlackRock, an investment firm, claims that tariffs are somewhat responsible for the slump in China’s economy. However, he still feels that investments in the Chinese market is advisable.
The slowdown occurred during the second quarter and over the summer. It now appears to be continuing into the autumn months as well.
However, this investment executive still feels there are worthwhile investment opportunities in China. Investors just need to take certain steps. A couple of these steps include:
- Diversify to reduce investment risks
- Stick to a long-term investment strategy
The lifting of prohibitions and restrictions for foreign investments
According to the Asia Business Law Journal, government agencies in China recently issued measures designed to ease restrictions on foreign investment. This could indicate a number of major changes.
There was a release of information listing the remaining prohibited and restricted sectors concerning foreign investment. Yet releasing this information could demonstrate China’s willingness to open up sectors where previous restrictions existed.
It appears there will be more available opportunities for investors. For example, this lessening of prohibitions allows for more investment in internet access services. It also includes a lessening of restrictions in other areas as well.
For American companies considering investments in Chinese businesses, finding experience and guidance in such matters can prove difficult. Yet it’s possible to implement investment strategies when conducting business planning and seeking the right legal advice.