Look at that chart.
The orange line — QQQ (U.S. Nasdaq 100) — up +1184% in 15 years.
The blue line — CQQQ (Invesco China Technology ETF) — up +128%.
If this were a horse race, the U.S. would be 12 laps ahead and the Chinese horse would still be getting saddled.
Yet, in every investing forum, you’ll find someone saying:
“Chinese tech is the deal of the decade — totally undervalued!”
So let’s settle this the BuySellKeep way — with a friendly (but data-driven) duel between two characters:
🧧 Mr. ChinaTechIsTheBest
“Look, it’s all cyclical. Every market has its moment. U.S. tech already had its monster run — the next big thing has to come from somewhere else. And that somewhere is China.”
He’s got some points:
- Valuations Are Way Cheaper
- CQQQ average P/E (2025): around 18×
- QQQ average P/E (2025): over 30×
- Some big Chinese tech names trade below book value — almost unthinkable in Silicon Valley.
- Innovation Still Booming
- China leads in EV production, battery tech, drones, and AI infrastructure.
- BYD outsells Tesla. DJI dominates drones. TikTok still out-innovates Instagram.
- Local startups are fast, pragmatic, and laser-focused on scaling.
- The Policy Pendulum
- After Beijing’s tech crackdown (2020–2022), regulation is loosening.
- China’s government is now supporting AI, semiconductors, and digital exports again.
So, Mr. ChinaTechIsTheBest says: “Markets are short-sighted. Fear and politics killed valuations, not fundamentals. When sentiment turns, these stocks will rocket.”
🗽 Mr. OnlyUsTechIsCool
“You can keep your cheap P/E. I’ll take my consistent rule of law, transparent accounting, and endless innovation.”
His arguments? Brutally simple:
- Earnings Quality and Trust
- U.S. tech firms report under strict regulation and predictable rules.
- Chinese tech firms answer to… well, multiple bosses. Investors have learned that “cheap” can stay cheap when you can’t fully trust the balance sheet or policy environment.
- Market Access and Capital Flows
- Global funds still prefer the U.S. — it’s liquid, stable, and politically safe.
- Capital has been leaving China since 2021, not entering. That depresses valuations for good reason.
- Innovation Leadership
- While China excels in manufacturing, the U.S. dominates in semiconductors, software, cloud computing, and AI models.
- Nvidia, Microsoft, and Amazon are now AI infrastructure monopolies.
- Chinese firms depend on restricted Western chips and tools — limiting their global competitiveness.
Mr. OnlyUsTechIsCool smirks and says:
“You get what you pay for. Cheap can mean risk, not opportunity.”
⚖️ The Numbers Don’t Lie
| Metric (as of Oct 2025) | CQQQ (China Tech ETF) | QQQ (U.S. Tech ETF) |
|---|---|---|
| 15-Year Return | +128% | +1184% |
| P/E Ratio | ~18× | ~32× |
| 3-Year EPS Growth | +5% | +20% |
| 5-Year CAGR | +1.7% | +14.7% |
| Dividend Yield | ~1.4% | ~0.7% |
| Beta (volatility) | 1.4 | 1.0 |
China tech is cheaper, but for good reasons: slower growth, higher political risk, weaker global brand strength, and lower investor confidence.
🧮 So, Is It Undervalued?
Maybe — but undervalued doesn’t always mean “ready to rebound.”
- In 2018, people said Chinese tech was undervalued.
- In 2021, they said it again.
- In 2023, again.
Each time, the value trap snapped shut.
Cheap became cheaper.
Until sentiment, capital flows, and policy alignment all turn positive, Chinese tech will remain a value mirage — it looks tempting, but you can’t drink it.
🧭 My Take
I like the story of “catching up.” But right now, CQQQ’s underperformance isn’t just about valuation — it’s about trust and access.
U.S. tech keeps creating new markets (AI, chips, cloud, robotics).
Chinese tech keeps recovering from regulatory trauma.
If Beijing truly supports private enterprise again and Western investors believe it, then yes — the rally could be epic. But for now, the chart doesn’t lie: +128% vs. +1184% is not a “discount” — it’s a reflection of structural differences.
Final Thought
Mr. ChinaTechIsTheBest ends the debate saying:
“The rocket’s still on the pad. When it lifts, you’ll wish you’d bought.”
Mr. OnlyUsTechIsCool replies:
“Maybe. But my rocket’s already been to Mars.”
Who’s right? Time will tell.
Until then, I’m holding a small speculative ticket on both rockets — just in case.
BUY, SELL, KEEP 
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