$iShares MSCI China A ETF(CNYA)$can be considered if investors are looking into diversification from US companies to China companies. Moreover, this etf gives investors access to the Chinese A-Share stock market, which has historically been largely inaccessible to international investors.

There are three main themes in this play

1. China has to open up one day - china's zero covid strategy has been disrupting the supply chain of some of its companies. With higher prices in goods, China reopening and running production at 100% will benefit from it. Already snippets of news in china easing quarantine has boosted the sentiment on chinese equities 

2. US Inflation and interest rate - yup, I know many of you may disagree with me but this is a US problem that is being solved by fed by hiking rates aggressively. I'm sure fed is smart enough to understand that rate hikes may not be the right medicine to the problem since this time, inflation is driven by supply constraints but the rate hikes can still act akin to a paracetamol that eases the pain and in this context, pain means growth. China doesn't have this issue and I don't see China having the need to hike rates or absorb liquidity to shunt growth anytime soon.

3. Sanctions - currently the anctions are more russia-centric than anything else. The good thing that comes out of this is it temporarily distracts the US sanctions on China. I'm sure most of us remember how the sanctions in the last few years hurt the chinese stocks.

While chinese stocks took a beating last year because of the negative perception on chinese gov imposing cold hard regulations on its companies but I think we are relatively use to it by now. That's why investing in chinese companies deserves a higher risk premium but it doesn't mean these companies are not making strong revenues and potentially robust earnings. And if the companies are indeed making monies (enough from the naysayers that these companies are fudging their financials), the stock price would show.