Chinese investments

Chinese investments in different segments are growing

China is actively recovering from the downturn and increasing its turnover not only in production segments but also in the real estate market. Chinese investment in development last year increased by 4.6%.
In total, the segment invested about 8.8 trillion yuan, of which 6.5 trillion yuan is allocated to residential facilities. This is 5.3% more than recorded in 2019.
Commercial real estate sales reached 984.8 million square meters, which is 3.3% less than in the previous period.
In terms of value, housing sales increased by 1.6%, and the total amount of transactions was 9.7 trillion yuan. At the same time, the first 7 months saw a decline of 2.1%.
The residential real estate market in China is developing on the principle that objects are intended for living, not for speculation. To this end, the government is trying its best to control the prices of apartments and houses, preventing their artificial overstatement.
It should be noted that China has increased investment not only in the real estate sector, but also in other markets. During the last 8 months it was possible to launch a number of new projects, introduce programs that stimulate investments into social capital. Thanks to this, from January to August, the amount of investment increased by 0.6% and reached 470 billion yuan.

In total, last year more than 1400 new projects were implemented in the country, in which 750 billion yuan was invested, which is 1.7 times more than in 2019. Besides, there are infrastructure facilities, projects related to life support and high technologies. The total amount of investments in these areas was 1.3 trillion yuan.
There is a surge of activity in the manufacturing sector. Here, the volume of investments grew by 133%. Special attention of developers is directed to the semiconductor industry. Chinese experts believe that this segment is one of the most promising. In the development strategy for 2021-2015, which was adopted by the Government of China, a separate paragraph emphasized that the country should become as independent as possible in the manufacture of semiconductor products. Such emphasis on this industry is primarily due to the tension between Beijing and Washington. Moreover, the emphasis is not on the regime of “catching up” with the USA, but on the quality and development of technologies. New generation materials, including silicon carbide, will be used for semiconductors.
China wants to reduce its dependence on the United States for such important sectors as quantum computers, microelectronics and computer equipment. According to the country’s leadership, this will take about 10 years.