KFVG ETF

Wall Street was moderately upbeat last week. The tech rally mainly pushed up the S&P 500 and the Nasdaq.

The China investing story has been a bumpy ride for investors lately, but that doesn't mean that every China strategy is the same. In fact, investors can find China strategies that are still offering strong returns.

It's no secret that China has widespread semiconductor ambitions and wants to reduce its dependence on imports of chips. Those goals are amplified at a time when the U.S. and some European nations are cracking down on domestic companies exporting semiconductors and related technology to China.

While China continues to iron out the wrinkles in economic growth, innovation continues to remain top-of-mind as the country looks to be a global technological powerhouse. That should spur increased interest for exchange-traded funds focused on the country.

China has shown willingness to collaborate with other nations when it comes to establishing global standards on artificial intelligence (AI).

China continues to push the boundaries on innovation. This is showing in metrics like the China Innovation Index, which measures the innovation capability for the second largest economy.

As Western sanctions crimp China's ability get access to certain technologies unavailable domestically, the second largest economy is looking inward and emphasizing self-reliance by boosting its own semiconductor industry. That, in effect, should open growth opportunities for investors.

Semiconductors manufacturing has become even more imperative, particularly with the growing adoption of artificial intelligence. As demand for processing power continues, China's semiconductors industry can offer investors tremendous growth potential to diversify their tech portfolios.

China's goal of self-reliance will certainly rely on innovation. Right now, the second-largest economy sits firmly atop the list of the World Intellectual Property Organization (WIPO) when it comes to innovation on a global scale.