China: Stock market of the future?

Anyone who browses through German newspapers repeatedly reads about the transformation taking place in China: the country has evolved from a mere manufacturing hub into an important and increasingly dominant player in various technology sectors. In fields such as electromobility, renewable energy, and 5G, China is expanding its presence, while at the same time, geopolitical tensions and regulatory uncertainties are on the rise. The competition between China and the USA is also intensifying in the area of artificial intelligence. What do these developments mean specifically for German investors? The seemingly obvious conclusion is to enter the Chinese stock market. After all, major Chinese companies like Alibaba and Tencent are listed on the stock exchanges in Shanghai and Shenzhen. The central question, therefore, is: Is investing in Chinese markets justifiable under the current conditions? This is precisely what we examine in this issue of Economic Situation and Strategy.