China’s Industrial Inflection

The article argues that China's fixed asset investment (FAI) is at an inflection point. After a poor performance in 2025, the government's policy is shifting from property and infrastructure towards smart factories and digital infrastructure. This pivot is expected to turn FAI into a market driver in 2026, which could surprise investors who have been discouraged by recent negative data. The author suggests that the divergence within FAI data, rather than the headline numbers, reveals the true story.