Part 6/9:
Yet, geopolitical tensions, especially U.S.-China relations, pose risks to this growth trajectory. During Donald Trump’s presidency, executive orders were issued to ban U.S. transactions with certain Chinese apps like Alipay and WeChat Pay. These restrictions have hampered the international expansion of some Chinese tech giants and could threaten their access to U.S. capital markets.
Despite these tensions, the liberalization of China’s domestic markets helps buffer these risks. Investors are generally optimistic about the sector’s long-term growth, focusing on internal opportunities rather than external headwinds. This is reflected in the performance of indices like the Hang Seng Tech Index, which tracks major Chinese tech firms such as Alibaba, Tencent, Meituan, and JD.com.