Over the past year, investors have faced a number of nasty headlines from China: crackdowns in the tech sector, the collapse of a major real estate developer, and even the prospect of delisting some of China’s most famous stocks from the US stock exchanges due to the effects of the ongoing crisis. However, international investors continue to support China.

While negative news usually pushes investors aside, when it comes to investing in China, the opposite is true. Every month in 2021, net flows of foreign investors into domestic Class A Chinese stocks have been positive, adding a total of $67 billion through the Stock Connect program. Why? One reason could be that global investors are underestimating the world’s second largest economy and second largest stock market and are increasingly viewing China as a separate asset class.

Despite their differences, China and the US seem to agree on one thing: They both want to dominate the vital industries of the future, such as renewable energy, electric vehicles and semiconductors. Both hope to control the entire value chain from raw materials to processing and production.

Indeed, many long-term investors expect to see a number of winners in each of these various industries in both China and the US. The steady influx of foreign capital into Chinese markets is leading investors to take positions in both camps, capitalizing on the promise of both opportunities while also reducing the risk of lost profits.