With the growing Star Market and the transformation of manufacturing industry chains, China's innovation in fundamental technology is opening up better opportunities – and investors are taking note.
China's 'new infrastructure' campaign presents opportunities for many industries. A combination of semiconductors, wireless, hardware and software is unleashing new business models across multiple sectors.
Regarding 5G, most investments center on 5G base stations, with base station supply chains as the core opportunity. Additionally, as the standoff between China and the United States gets ever more serious, some critical components imported from the US will face shortages but will provide more chances for home-made products. For instance, 5G construction could trigger the semiconductor industry's development, and chips will have more significant investment value.
When it comes to the data centers, two main factors promote their growth. Firstly, COVID-19 accelerates data center construction, as the traditional industry is supposed to do the digital building. Secondly, with the emergence of 5G's new applications – such as short videos and e-commerce live streaming – we find further triggering of AR and VR, promoting the expansion of data centers.