U.S.-China tensions have forced Beijing to become more self-sufficient, which could be an advantageous thing for innovators in China, according to an investment specialist at JPMorgan Asset Management.
“One of the unintended consequences of this push and shove between the U.S. and China is that it has just underscored this determination in China to become self-sufficient in a whole variety of industries,” Alexander Treves told CNBC’s “Street Signs Asia” on Thursday.
In the mid-1990s, Chinese companies mainly were mass-market manufacturers of “commoditized goods,” he added.
“Now, you’ve got genuine tech innovators,” he said. “I think that the geopolitical tension you’re talking about will just actually supercharge that — because China needs to do these things itself, and they will carry on with progress in that area.”
China has advanced its investment into its local chip industry in a bid to be self-reliant when it comes to crucial technology for various products.
Treves said investors should look for companies that will succeed despite geopolitical tensions.
