China signaled it'll pursue tech self-reliance, while the US inked a rare earths deal with Australia – moves that take decoupling further https://t.co/Yl7rrhugiH ...

All right. So, what do you make of just how investors are taking the recent tensions between the US and China, some of the uh credit issues we just hit on just a short time ago, and of course, the government shutdown going into its 20th day. >> Yeah, this market has had an incredible ability to shake off all negative headlines.And we think that the reality of why it's able to do that is because positioning was so light coming out of the April Liberation Day lows. And because you had institutional investors ...

JUST IN: 🇺🇸🇨🇳 WTO Chief warns global GDP could drop by 7% if the US & China decouple. ...

Core Viewpoint - The current market concerns are more focused on trade tensions, particularly between the US and China, rather than the government shutdown, with recent developments around rare earth mineral restrictions escalating tensions [1]. Trade Relations - China is attempting to frame its actions as a response to US provocations, despite claims that the US is not to blame for the current situation [2]. - The conflict is characterized as a broader issue of China versus the world, not just a US-China problem, with international allies coordinating a unified response [3]. Economic Impact - The US has various levers to counteract China's actions, indicating that both sides possess significant economic leverage over each other [4][6]. - There is a desire to avoid damaging either economy, but the US is committed to asserting its sovereignty in trade matters [5]. Strategic Industries - The investment boom in the US is partly driven by a need to reshore strategic industries, including pharmaceuticals, semiconductors, shipbuilding, steel, and rare earths, which have been neglected in past administrations [7][8]. - The COVID-19 pandemic served as a catalyst for bringing back these industries, highlighting the importance of self-sufficiency in critical sectors [7]. Diplomatic Engagement - High-level communications between US and Chinese officials are ongoing, with efforts to maintain dialogue and prevent escalation [9][10]. - The relationship between the leaders of the US and China is seen as a stabilizing factor, contributing to the avoidance of further escalation in trade tensions [11]. Market Reactions - The stock market's performance is linked to economic policies rather than solely to trade negotiations, with the implication that strong measures against China will be taken if deemed necessary for economic health [12].

Core Insights - Asian companies, especially in China, are shifting their supply chains towards Europe as part of a structural transformation, moving away from reliance on the US [1][2] - The US tariff situation is significantly impacting manufacturing costs, prompting companies to diversify their supply chains [2] Investment Trends - Chinese foreign direct investment (FDI) in the EU and UK surged by 47% to €10 billion (US$11.7 billion) in 2024, marking the first major rebound since 2016 [3] - The share of total Chinese FDI in the EU and UK increased to 19.1% in 2024 from 15.4% in 2023, while the US attracted less than €2 billion, accounting for only 4% of global Chinese outbound FDI [3] Sector-Specific Developments - Electric vehicle (EV) projects dominated Chinese greenfield FDI in Europe, attracting €4.9 billion, which is 83% of the total [4] - Notable Chinese investments in Europe include Contemporary Amperex Technology's €7.3 billion factory in Hungary, expected to start production by the end of 2025, and BYD's first EU factory in Hungary, set to begin production next year [5] - Chinese home appliance and consumer electronics companies are also expanding in Europe, exemplified by Haier's acquisition of Carrier's Dutch refrigeration division for €716 million and Midea's increasing sales in the region [6]

Brendan, uh, the timing of this is all very interesting. Of course, we heard from Megan on Tik Tok and now we hear from Christina on chips. And does this suggest to you that, uh, maybe China is is trading Tik Tok for chips as it pertains to just the geopolitical balance between China and the US.>> Yeah. What I mean, these are ponds on the chessboard. I think a few copies of Art of the Deal got sold in China.uh if it's Boeing airplanes, soybeans from the Midwest. Uh these are things that from the China side, ...

Bitcoin is decoupling from Gold.What comes next is obvious.Catch up! https://t.co/8VTNzvzWTF ...

I don't think anything's really changed since Wednesday or Thursday of last week, but the market is moving in that general downward direction. Yeah, I mean, their earnings was kind of a non-event in many respects. There was a lot of left in that kind of TBD category.We still really don't know what's going to happen with China when that revenue is going to come back, How much of it is going to come back. But we believe that probably will be some China revenue. So that was a kind of a mixed message.We know th ...

On the bright side, I looks like ETH decoupled from the Wale vacation indicator ...

Among business and policy elites, no consensus exists about whether India should aim to decouple from China. If Donald Trump were predictable, such calculations would be easier.Because he is not, the country walks on treacherous ground https://t.co/sdGjM1qM8c ...