Chinese tech companies are experiencing a significant surge in growth, with the Hang Seng Tech Index rising by 23% this year alone. This is a welcome change for investors who have been impacted by years of regulatory assault on the industry.
One notable sign of this boom is DeepSeek, which has shown promising results despite facing intense regulatory scrutiny. However, despite this optimism, there remains a major obstacle that could impact China’s tech sector: intellectual property protection.
While Alibaba Group Holding Ltd. and Tencent Holdings Ltd.’s shares have returned to their 2022 levels, and EV makers BYD Co. and Xiaomi Corp. have hit record highs, the lack of robust IP protection could pose a significant threat to innovation and growth in the industry.
Source: https://www.bloomberg.com/opinion/articles/2025-02-17/china-tech-four-reasons-to-buy-beyond-deepseek-and-one-fatal-snag