/US-China trade war to shake up investing (via Qpute.com)
US-China trade war to shake up investing

US-China trade war to shake up investing (via Qpute.com)

“China and the US will be competing more, not collaborating as they did in the past,” Mr Reynolds said.

“This is going to be quite an important dynamic for a lot of the tech companies and a lot of the markets involved in technology.

“If you see changes to the companies participating in these various markets, that will cause change in the competitive landscape so other suppliers might get in.

“New commercial links will probably be created between players that are allowed to engage in trade.

“From an investor’s point of view, this creates opportunities for new companies to grow.”

In the current global environment, Mr Reynolds said investors must be cautious about the companies and industries they invested in.

“Obviously you don’t want to be invested in a company that is immediately affected by the trade dispute.

“You want to invest in a company that can benefit from the change in trading patterns.”

President Trump has threatened to impose more tariffs on a remaining $US300 billion of Chinese goods if President Xi Jinping doesn’t enshrine into law a better deal for American companies operating in China.

The US has concerns about market access, theft of intellectual property, forced technology transfers, compulsory joint ventures with Chinese partners and investment restrictions for certain industries.

The Trump administration and US Congress have placed more restrictions on Chinese entities seeking to sell and invest into the American market, especially in technology, critical infrastructure and defence equipment.

The two powers are immersed in a technology arms race.

The US national security establishment is deeply worried Beijing’s Made in China 2025 blueprint, which aims to dominate artificial intelligence, quantum computing, robotics, hypersonics, nano materials, advanced metals and precision machinery, will give China a defence advantage against the US and its regional allies.

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