Core Insights - The article discusses the recent phase agreement between China and the U.S. to "pause" certain tariffs, indicating a temporary ceasefire in trade tensions, but warns against viewing this as a resolution to the broader U.S.-China relationship [1] - It highlights a shift in U.S. trade policy from merely correcting trade deficits to a more complex strategy aimed at long-term containment of China's industrial upgrades, influenced by domestic inflation and manufacturing costs [1][4] - The article emphasizes the need for A-share investors to adapt to a new valuation logic that prioritizes "safety and resilience" over "efficiency and growth" in the context of ongoing tariff negotiations [1][8] Macro Mechanism - The U.S. trade policy has evolved into a bipartisan consensus characterized by a systematic approach to competition, moving from a focus on trade deficits to a strategy aimed at containing China's industrial advancements [3] - The recent tariff proposals, including a 34% punitive tariff on China, were initially perceived as a threat to globalization, but the subsequent pause indicates a recognition of the high costs associated with unilateral tariffs [2][4] Industry Impact - The normalization of tariff negotiations is expected to fundamentally reshape the valuation logic of A-share industries, with a shift towards valuing companies based on their ability to withstand external shocks and maintain supply chain resilience [8] - The technology sector is experiencing a revaluation towards "self-sufficiency," as companies seek to mitigate risks associated with U.S. trade policies by increasing domestic production capabilities [9] - Advanced manufacturing is transitioning from a "product export" model to a "capacity export" model, with companies establishing overseas production bases to navigate tariff barriers and geopolitical risks [10] Micro Strategies - Companies are shifting from an "efficiency-first" approach to a "resilience-first" strategy, necessitating increased inventory and diversified supply chains to mitigate risks from trade tensions [13] - There is a growing emphasis on "hardcore" innovation and reducing reliance on U.S. technology, with firms investing in foundational research and development to enhance their competitive edge [14] Long-term Investment Strategy - The article suggests that investors should focus on three categories of assets that are likely to thrive amid ongoing trade tensions: technology leaders achieving domestic breakthroughs, manufacturers with global production capabilities, and consumer brands benefiting from domestic market growth [16]