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9 October 2025
Insights by DBS Group Research
Why China presents compelling investment opportunities in the next decade
China is undergoing a foundational transformation that positions it as an attractive destination for investors looking to capitalise on technological advancement and structural economic shifts.
While immediate concerns about property sector challenges, demographic changes and trade tensions dominate headlines, the country's ongoing tech transformation and supportive policies present a constructive medium-term investment outlook.
Let's explore the key reasons why China merits serious consideration in your global investment portfolio.
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Sustained economic growth trajectory
DBS economists expect China to maintain an average GDP growth rate of 3% over the next 15 years. This sustained expansion is supported by a growing consumption base and productivity gains from AI and automation, which offset slowing capital formation as the economy transitions toward innovation-led development.
Technology transformation driving value creation
China is positioning itself at the forefront of the next wave of technological advancement. The country is shifting toward higher-value manufacturing and services, driven by comprehensive tech transformation that spans multiple critical sectors.
AI, semiconductors and robotics are emerging as key drivers of this transformation, backed by strong policy support and substantial investment commitments.
The integration of advanced technologies extends beyond manufacturing into smart urbanisation and renewable energy investments, which will enhance operational efficiency while supporting the transition to sustainable growth models.
Sectoral opportunities in emerging technologies
Artificial Intelligence and Automation: AI adoption in healthcare, logistics and manufacturing represents a critical investment theme. AI-driven innovations, including precision diagnostics in healthcare and smart supply chains, will optimise resource allocation and create new value propositions across industries.
Electric Vehicles and Green Technology: The EV sector and automation are reshaping key industries, supported by substantial policy backing and infrastructure development. Green hydrogen and renewable energy investments align with China's long-term sustainability commitments.
Advanced Healthcare Technologies: The healthcare sector is experiencing transformation through AI integration and precision medicine, creating opportunities for investors focused on demographic-driven demand growth.
Semiconductor and Chip Technology: China's drive for semiconductor self-sufficiency represents a strategic national priority with significant investment support and growth potential.
Strategic positioning for global markets
China's evolving role in global supply chains presents opportunities amid the changing dynamics of international trade. The reset of globalisation and reshaping of supply chains creates openings for companies and investors who can navigate this transition through adroit public-private partnerships and pragmatic positioning.
The country's focus on moving up the value chain of manufacturing and services positions it to capture higher-margin opportunities in global markets, particularly in technology-intensive sectors.
Investment considerations and risk factors
While opportunities are substantial, investors should consider key challenges: demographic decline with a shrinking workforce and rising elderly dependency, ongoing property market correction affecting household wealth and consumer confidence and labour market pressures from youth unemployment and tech-driven job displacement. Traditional manufacturing and labour-intensive sectors are expected to recede as the economy transitions toward AI, electric vehicles and advanced technologies.
The case for China
China offers international investors the opportunity to participate in one of the world's largest economies as it transitions toward technology-driven growth. The combination of projected 3% average GDP growth over 15 years, productivity gains from AI and automation and strong policy support for innovation creates a compelling environment for long-term investment in well-positioned sectors and companies.
Grow your wealth nowSources:
DBS Insights Direct: China 2025-40 Outlook –Tech and policy foundation
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