Is China a good place to invest now? China’s economy has rebounded in 2023, as mobility and activity picked up following the lifting of its “Zero-COVID” policy. However, the country’s manufacturing and consumer spending are weakening since anti-virus controls ended. Currently, the world’s second largest economy still faces significant economic challenges: a trade war, geopolitical tensions, crackdown on technology and property markets, and rapidly changing regulations. Longer-term, headwinds to growth include an aging population, high youth unemployment, rising labor costs and slowing productivity growth. The current climate in China is increasing uncertainties (and even risks) for U.S. firms to operate in China, and the landscape is risky for foreign investors.

As U.S. foreign direct investment into China is dwindling, are there any Chinese stocks worth investing in? Do the renewable energy and industrial automation sectors provide value creation potential? Will the high-risk, high-return investments in China become a thing of the past, or does investing in China simply require a nimbler and more selective investment approach? Professor Chris Tang, faculty director of the Center for Global Management, addressed these questions, among other topics, in conversation with author and wealth strategist Rob Luna (’16), chief executive officer of Real Talk Capital, and Matthews Asia investment strategist Andy Rothman, who is responsible for research on China’s economy and on U.S.-China relations, and has been following China for years. They reviewed the current state of China’s economy, investor trends, challenges and growth opportunities, and shared their predictions on the longer-term prospects for China’s economy and the bright spots for investors.

Learn more about the UCLA Anderson Center for Global Management’s Woo Greater China Business Series:
https://www.anderson.ucla.edu/about/centers/center-for-global-management/events-and-discussions/global-conferences/wilbur-k-woo-greater-china-business-series

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