China needs a better narrative. Recently China warned nations that it would retaliate if they struck trade deals that went against its interests. China needs to understand that selling to the US made many countries rich and served as the tide that lifted all boats in an economic sense. China's contribution has been low cost goods which enables consumers to have a decent standard of living, but which results in large trade deficits for most countries. If US purchases decrease, exporter countries will become poorer. Hence, countries may end up forming coalitions to protect their fund outflows. China imports will be one such target. Hence, China stocks are not the safe haven, next great thing that people assume them to be.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
