After 40 years of reform and opening-up that have transformed the economy, China is entering a new phase of economic development. This new phase has also led to concerns from global investors about how to get the most out of the economic shift.

China’s development drive has three main aspects: bringing back resources and tech, building industrial capacity, and tightening control of Chinese overseas investments.

Global Chair of KPMG’s Global China Practice, Vaughn Barber wrote in the company’s China outlook report 2018 that there are several opportunities for foreign companies to get into China’s market.

“Firstly, foreign companies could invest in services which help high value added. Second choice is supplying high-end products to middle class. Last but not least, is partnering with Chinese companies going global,” said Vaughn Barber.

Barber said China’s domestic market will be further integrated into international companies’ global supply chains. However, there are still challenges for foreign investors. China is tightening overseas investment policies and local giants are now more competitive.

“There is strong interest in Chinese tech space. However, things have changed after 40 years of stellar growth and accumulated wealth. Nowadays, domestic capitals are competing overseas capitals,” said Jing Wu, partner of Qiming Venture Partners.