--- title: "Fidelity International: Geopolitical risks intensify divergence, China remains the core of emerging market development" type: "News" locale: "en" url: "https://longbridge.com/en/news/280966411.md" description: "Fidelity International's analyst survey indicates that the escalating conflict in the Middle East has intensified supply shocks in emerging markets, leading to developmental divergences across regions. Despite facing short-term pressures, China remains the core of emerging markets, with strong long-term growth momentum. The drive from high-tech industries, the localization benefits for semiconductor equipment manufacturers, and the potential of both high-end and affordable consumer markets are all factors supporting China's long-term outlook. However, geopolitical risks and fluctuations in energy markets pose challenges to the prospects of emerging markets" datetime: "2026-03-30T06:32:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280966411.md) - [en](https://longbridge.com/en/news/280966411.md) - [zh-HK](https://longbridge.com/zh-HK/news/280966411.md) --- # Fidelity International: Geopolitical risks intensify divergence, China remains the core of emerging market development The "Fidelity International 2026 Analyst Survey" points out that emerging markets are significantly impacted by supply shocks caused by conflicts in the Middle East. Not only is the flow of energy disrupted, but escalating geopolitical tensions are also driving up prices, leading to greater divergence in the development of various regions within emerging markets. Long-term investors need to look beyond short-term noise and focus on the fundamentals that shape the market in the long run. Fidelity analysts observe that mainland China remains the core of emerging market development. Although the rising costs of energy imports and renewed supply chain disruptions bring short-term pressure, other structural growth drivers continue to support its long-term outlook. This includes policymakers' ongoing emphasis on promoting high-tech industries to strengthen self-sufficiency and support growth in areas such as electric vehicles, artificial intelligence, biotechnology, and robotics. Fidelity analysts note that mainland China's semiconductor equipment manufacturers benefit from domestic capacity expansion and localized supply chains. The biotechnology sector has advantages over Western peers in terms of faster research and development timelines and lower costs. However, consumer demand remains uneven, with a weak housing market and ongoing deflationary pressures, although there is still potential at both the high-end and affordable consumer market ends. Niamh Brodie-Machura, Chief Equity Investment Officer at Fidelity International, states that geopolitical developments once again affect the outlook for emerging markets, whether through the direct impact of trade and policy uncertainties or the indirect transmission of energy prices and inflation. The energy market is experiencing significant volatility, adding complexity, especially in regions sensitive to energy supply shocks. If the market stabilizes, short-term fluctuations may slow down, but currently, the expected risks have shifted towards prolonged disruptions, further exacerbating inflationary pressures, particularly affecting energy-importing countries ### Related Stocks - [.HXC.US](https://longbridge.com/en/quote/.HXC.US.md) - [510210.CN](https://longbridge.com/en/quote/510210.CN.md) - [399107.CN](https://longbridge.com/en/quote/399107.CN.md) - [399001.CN](https://longbridge.com/en/quote/399001.CN.md) - [000047.CN](https://longbridge.com/en/quote/000047.CN.md) - [DRAG.US](https://longbridge.com/en/quote/DRAG.US.md) - [PGJ.US](https://longbridge.com/en/quote/PGJ.US.md) - [399106.CN](https://longbridge.com/en/quote/399106.CN.md) - [000300.CN](https://longbridge.com/en/quote/000300.CN.md) - [000001.CN](https://longbridge.com/en/quote/000001.CN.md) - [MCHI.US](https://longbridge.com/en/quote/MCHI.US.md) ## Related News & Research - [China April data misses badly, Iran war and weak demand weigh. Retail sales growth plunge.](https://longbridge.com/en/news/286703491.md) - [ROI-Hormuz closure extends well beyond oil to threaten Chinese EVs: Russell](https://longbridge.com/en/news/285937238.md) - [China April Retail Sales +0.2% y/y (exp 2%) & Industrial Prduction +4.1% y/y (exp 5.9%)](https://longbridge.com/en/news/286699672.md) - [New Home Prices Rise, Hold Steady in Five More Major Chinese Cities in April](https://longbridge.com/en/news/286849542.md) - [China economy slows sharply as investment returns to contraction](https://longbridge.com/en/news/286707036.md)