Asia-focused private equity managers are turning more bullish on the world’s second-largest economy, betting on Beijing’s drive for technological self-sufficiency and rapid adoption to deliver the next phase of growth.
Jean Eric Salata, chairman of EQT Asia, said that the strategic priorities outlined in Beijing’s new five-year plan are poised to deepen China’s edge in advanced manufacturing, bolster investment in technology and artificial intelligence, and boost consumption.
“I’m actually bullish on China — and very bullish on Hong Kong as a result,” Salata said at the Global Financial Leaders’ Investment Summit on Wednesday.
He pointed to China’s rapid adoption of automated manufacturing as a sign of the country’s ability to scale its capabilities. “It’s mind-blowing,” he said, citing automation at Xiaomi’s electric vehicle: “it has very few people there — and a lot of robots.”
Zhang Lei, founder and chairman of Hillhouse Investment, said China’s strength lies in its ability to commercialize artificial intelligence quickly. “China will likely be the first to deliver much more on the AI application layers,” he said, citing rapid product iterations, lower costs, open-source models, and a massive consumer base willing to embrace new technologies.
