Foreign investment opportunities in China's emerging industries over the next 40 years

For 40 years China has opened up to the outside world, but its tendency to protect its home-grown industries has, however, stifled foreign investment.

But as Beijing seeks capital flow from outside to cushion the economic downturn, especially amid the escalating trade war with the United States, new opportunities for foreign investors are opening up.

In June, Beijing announced a long-anticipated easing of foreign investment curbs on sectors including banking, the automotive and heavy industries, and agriculture, as it moved to fulfil its promise to open its markets further.

This comes a year after restrictions were also eased or removed in emerging industries, such as the manufacture of new energy vehicles and civil satellites. The Chinese government had then promised to grant incentives to foreign investors who enter high-tech industries as well, like that of virtual and augmented reality devices.

The recent reforms are also seen as a bid by the country to transform its economy, especially in high-end manufacturing, services and green industries, and a testament of Beijing’s determination to push forward with economic reforms.

At the Boao Forum for Asia 2018 in April, China’s President Xi Jinping described economic globalisation as an irreversible trend and stated that China would continue opening up.