Bearish on U.S., bullish on China - SupChina

Bearish on U.S., bullish on China


  • Go long China, short U.S.: 5 smart stock trades / Barron’s (paywall)
    One well-known investor has no confidence that the Trump rally will last. Marc Faber, who first became famous by advising clients to get out of the stock market before the October 1987 crash, believes that optimism about U.S. stock markets caused by the perception that the current president is business-friendly is misplaced, and that Chinese stocks offer a better long-term investment. Barron’s offers its own stock tips based on Faber’s theory: Sell shares in American companies such as ExxonMobil, Verizon, JPMorgan Chase, Apple, and Nike, and buy into their Chinese counterparts such as PetroChina, China Mobile, China Construction Bank, Tencent, and Anta Sports. It should be noted that Faber has a long history of bearish views on the American economy.
  • European businesses attack China high-tech push / Financial Times (paywall)
    The EU Chamber of Commerce in Beijing today released a 70-page report on China’s industrial policy, known as Made in China 2025. Calling the initiative “highly problematic,” it cites as a major issue the “intense pressure” on European companies to “turn over advanced technology in exchange for near-term market access.” Made in China 2025, also translated as China Manufacturing 2025, names 10 sectors in which China should dominate locally and be competitive globally, including robotics, advanced medical technology, semiconductors, and new energy vehicles. The Center for Strategic & International Studies has a primer on Made in China 2025 here; the Chinese government’s page on the project is here.

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Jeremy Goldkorn

Jeremy Goldkorn is co-founder of the Sinica Podcast and currently edits SupChina and its daily newsletter.