Who from "the West" is going to consider major investments in China now? If by some miracle you manage to keep your IP secure, you risk losing your entire investment if/when the world gets tired of their support for the facists in Russia.
[edit] since I wrote this comment....
Who? Those who want to make money.
But everyone is showing their hands now.
And at the moment, it sure looks like China is supporting a dictator on the march to a major war. Trillion dollar funds are writing off their Russian investments at the moment. How long before China is seen in the same way?
People have been saying this for more than 10 years. As long as interest rates remain low and China continues to grow, there will be plenty of western money flowing in.
double-digit growth is great until it ends in zero.
Meanwhile in China, inflation is less than 1.5%, interest for money market fund is 2.4%.
You earn risk-free 0.9% if you hold them in CNY. You lose 7% if you hold them in USD.
Your choice now?
This is false, you are exposed to risk in changes in foreign exchange rates.
The yuan is pegged to the dollar, so it has the same exposure to fluctuations in fx that the dollar has. (Not to mention the fact that the Chinese government periodically adjusts its exchange rates)
1 year? 5 years? 10?
Your comment amounts to “yuan appreciation against the dollar is a sure thing”. Which in finance seems like a suspect statement.