Conflict in the Middle East and global turbulence following US-Israeli strikes against Iran have prompted foreign investors to seek certainty in China. Speakers at the China Development Forum highlighted this trend.
At the China Development Forum, Zheng Yongnian from the Chinese University of Hong Kong stated that Middle East conflict and rising global uncertainty are driving capital into China, which offers greater certainty. “Capital needs expectations,” he said. “If people don’t know when the [Iran] war will end and uncertainty continues to mount, while China becomes increasingly certain, capital will naturally flow in.” Zheng pointed to recent visits by European leaders to China as significantly symbolic, urging China to “maintain strategic composure in the face of profound changes.” He also called for China and the United States—described as a “de facto G2”—to deepen dialogue on bilateral relations and broader global affairs. Pan Gongsheng, governor of the People’s Bank of China, told the forum that the country will steadily promote “high-level opening up” of its financial sector, deepening interconnectivity of financial markets and cross-border payment systems to smooth the path for global capital. The article was published on 2026-03-22.
