Is China Buying or Selling? – Both? The disparity between the press narrative and capital markets is palpable as is between U.S business and defense interests.
While the U.S. press obsesses with China’s destruction, very little stops western investors from bargain hunting in China. Yes, U.S. bans a short list of vital military U.S. exports and U.S. investment in Chinese companies.
When the dust clears, China’s strategy may have paid off with a modest 2023 erosion in U.S. trade even under 15% with bargain hunting investment inflows to China. Perhaps China can even procure a U.S. bailout?
The CCP’s inscrutable centralized coordinated MO is notorious for piling on a public relations narrative and extracting cash from the U.S. In this case, while China transitions to a more manageable economy in their view.
Which way is it? Is China a dire defense threat? Yes, consensus reached. Will plugging holes in the dike of investment flows to China and imports from China result in U.S. or China growth = hegemon?
Markets are not signaling gloom and doom for China’s economy but, the press narrative is…China’s doing? Is this an attempt to blame the U.S. for China’s economic woes and corner markets including EV dumping to U.S. from China?
Opinion by: Paul Boardman, August 29, 2023
Markets are not signalling doom and gloom for China’s economy | Financial Times (ft.com)
How China weaponizes the capitalist system against us | The Hill
USTR: China rare earths dominance makes U.S. supply chains vulnerable (cnbc.com)
China’s ‘Debt Crisis’ Gets Washington Hearing After Evergrande Bust (Forbes)
Top U.S. and Chinese commerce officials express support for easier trade, but deep differences remain | AP News
Chinese Stocks Rally After Cut to Tax on Trades. Alibaba, JD.com Are Rising. | Barron’s (barrons.com)
China Stocks Surge After New Measures to Boost Markets (yahoo.com)
China Asks Some Mutual Funds to Avoid Net Equity Sales to Boost Market – Bloomberg
Dragon Is Dying – But Still Dangerous (substack.com)
China Remains Embedded in U.S. Supply Chains: Jackson Hole Paper – Bloomberg
Friends at any price: China seeks allies, arms markets in West Africa as French influence wanes (france24.com)
U.S. will not compromise with China on national security, says commerce secretary | Financial Times (ft.com)
The China Paper Insight: China quietly recruits overseas chip talent as US tightens curbs | Reuters
China sends aircraft and vessels toward Taiwan days after U.S. approves $500-million arms sale (nbcnews.com)
Fukushima: China bans seafood from Japan after the nuclear plant starts releasing wastewater | AP News
