Mobius on US-China Trade War, AI Correction

US-China Trade & Geopolitics - The US has been a winner in trade deals, particularly with soybean exports and rare earth releases from China following meetings between Xi and Trump [1][2] - A shift within the Communist Party of China (CCP) towards a friendlier and more open orientation is making the Chinese market more attractive [4] - The biggest risk for China is a return to the "Wolf Warrior" stance, but the latest plenum suggests a desire to mend relationships with the US [12][13] - Taiwan was notably not mentioned in meetings between Xi and Trump, indicating a potentially significant shift in US-China relations [13] China Market & Technology - China's technology sector, especially in chips and other areas, is becoming increasingly self-sufficient and attractive to investors [5] - The Electric Vehicle (EV) market in China is experiencing incredible growth, with Chinese vehicles surpassing even luxury brands like Rolls Royce in some aspects [6][7] - The Chinese market is outperforming India and even the US market, signaling a potential long-term rerating of China [8][9] - A correction of 30-40% in the AI space is expected due to excessive spending, but AI remains critical [15][16][17] Emerging Markets & Investment Strategies - Emerging Markets (EM) are poised to benefit from trade policies, with Southeast Asian countries like Malaysia and Thailand potentially replacing China in some export sectors [19] - A stronger US dollar is generally positive for EMs as it boosts export earnings [24] - India's bureaucracy is a significant impediment to foreign investment, hindering its ability to absorb capital and technology [29][30] - Korea, along with Taiwan, is considered an interesting market due to its strong technology sector, despite recent sell-offs [36][37]