Decoupling between U.S.-China is unlikely, says KraneShares' Brendan Ahern

Geopolitical and Economic Strategy - The discussion suggests a potential trade-off where China might concede on TikTok in exchange for advancements in chip technology, viewing these as strategic assets in the geopolitical balance with the US [1] - China strategically applies pressure using various economic levers, including Boeing airplanes, soybeans, and rare earth minerals [2] - Despite talk of decoupling, the US and Chinese economies remain highly integrated due to consumer demand for affordable Chinese goods and Chinese demand for US products like airplanes and Nvidia chips [3] - The US may be willing to concede on issues like TikTok to secure rare earth magnets from China, indicating a pragmatic approach to trade relations [4] TikTok and ByteDance Analysis - The willingness of the Chinese to potentially relinquish control over the TikTok algorithm to US owners may indicate a shift in focus towards securing advancements in chip technology [5] - US private equity holds a significant stake in ByteDance, with approximately 60% of shareholders holding US passports, suggesting that restricting ByteDance would harm US interests [6] Investment Opportunities in China - The market is showing a rerating of Alibaba due to its AI capabilities and cloud business [8] - There are investment opportunities in smaller, less-exploited Chinese companies in sectors like online music (Tencent Music), online video (Bilibili, Kuaishou), although these may be volatile [9] E-commerce and Market Trends - The e-commerce sector, particularly restaurant delivery, has faced challenges, but there is hope that anti-involution measures, similar to those in the auto and solar industries, could address overcapacity issues [10]