Some of Wall Street’s wealthiest financiers recently gathered in Los Angeles at the annual Milken Institute Global Conference where investment in China was among the number of topics discussed and debated.
While some speculate that the U.S. and China are edging closer to a Cold War, others remain more hopeful that the relationship between the two countries is not nearly as bad. Despite ongoing tensions and extreme shifts in Chinese government policy, the world’s most populous country remains a rich market filled with opportunities for investors.
Health care and climate technology
While China’s growth continues to slow, one only must look at the country’s 400 million middle-class residents to confirm that it remains among the world’s strongest and hottest markets.
The investment opportunities currently available in China remain similar to those in the U.S. and include:
- Health care: With the country’s aging population combined with its physician shortage, digital health care seems promising. Another reason for optimism is that China does not possess the same data privacy protections as Western countries.
- Climate technology: This may seem a surprise to some due to China’s hesitancy in adopting clean-energy mandates. However, the country has implemented a net-zero carbon emissions plan by 2060. Also, China remains a leading maker of technologies such as electric-vehicle batteries and solar cells.
- Real estate: Despite the Evergrande debacle and empty apartment buildings, real estate demand continues to be strong since the Chinese prefer investing in property over financial assets.
There are more investment and business opportunities in China for the U.S. companies willing to take calculated risks.
Trusting instincts and understanding the market
The four-day Milken Institute Global Conference concluded on Oct. 20, addressing just a few of the pertinent issues between the U.S. and China. Investors and entrepreneurs must trust their instincts but also understand that they must have a thorough understanding of the market while cautiously gauging the squabbles between the two nations.