According to China Daily, February 12, 2026
China is positioning itself to stabilize fixed-asset investment in 2026 after a 3.8% decline in 2025, signaling fresh opportunities for both domestic and foreign investors. Economists say restoring private-sector confidence and aligning investment policy with structural reforms will be key to reversing the slowdown.
Emerging industries present particularly attractive prospects. Sectors including new energy, aerospace, biomanufacturing, hydrogen energy, quantum technologies, and 6G communications could create multi-trillion-yuan ($144+ billion per trillion yuan) markets over the next five years under China’s 15th Five-Year Plan (2026–2030). Upgrading traditional industries—such as manufacturing automation, smart grids, and urban infrastructure—could unlock an additional $1.44 trillion market.
Government support is expected to remain strong, with funding via central budgets, special treasury bonds, and local government initiatives targeting strategic infrastructure, technological innovation, and public services. At the same time, private investment, which accounts for around 60% of GDP, will be critical. Measures to boost private sector participation include tax incentives, faster project approvals, policy-backed investment funds, and easier access to cross-regional and overseas markets.
“China’s investment policy is evolving,” said Chen Yongjie, vice-president of the Beijing Dacheng Enterprise Research Institute. “Government spending is no longer the main driver. The next phase relies on private capital supported by structural reforms and strategic projects.”
Despite short-term pressures from local debt and cautious corporate sentiment, China’s investment outlook remains resilient. Analysts highlight opportunities for foreign investors in high-tech sectors, green energy, infrastructure, and emerging industries, supported by strong policy backing and large-scale market potential.