Supply Chain Resiliency and Economic Security - The US government is focused on ensuring supply chain resiliency and preventing over-reliance on specific countries [1] - The economic security strategy is based on rebalancing trade, stabilizing conflict zones, industrializing America, and securing supply chains [2][3][4] - PAX Silica provides a framework for securing supply chains with allies and partners to lead future industries [4] - Economic security is considered national security, making economic policy a prerequisite for national survival [7] - The US government is leveraging various investment vehicles and collaborating with allies and the private sector to strengthen economic security [7][8] Public-Private Partnerships and Investments - Public-private partnerships are being utilized to support specific smelters and initiatives [5] - The US government is investing in domestic mineral production to ensure a reliable supply for national defense [9][10] - An example investment is $400 million for 50% of empty materials, framed as an investment in America's defense capabilities [8] International Collaboration - The US is collaborating with countries like Korea, Japan, Australia, the UK, Singapore, and Israel to address global supply chain challenges [6] - The inaugural PAX Silica summit included allies and guests like Taiwan and the OECD, with expectations for more countries, including India, to join [11][12] - The US is engaging with Europe on economic security, noting a growing consensus and opportunities for collaboration [17][24] US-China Relationship - The US aims for a constructive, stable, and positive relationship with China while prioritizing American interests [26] - The US seeks to win the "air race" through innovation and diffusion, expanding compute capacity domestically and exporting technology globally [27][28]

Summary of the Conference Call Company/Industry Involved - Focus on the **China Equity Market** and its outlook for **2026** as discussed by **Morgan Stanley**. Core Points and Arguments 1. **Investor Sentiment**: Investors are cautiously optimistic about China, seeking signs of bullish trends while being wary of rising volatility. A significant improvement in fiscal policy and US-China relations could enhance this outlook [2][3][4]. 2. **Structural Improvements**: The Chinese equity market is experiencing structural improvements, including: - Bottoming out of structural Return on Equity (ROE) due to corporate self-health efforts and a shift towards higher quality, larger cap, and innovative companies [5]. - Enhanced business environment for the private sector and entrepreneurs [5]. - Government's commitment to cushion against economic downturns [5]. - Stabilization of geopolitical dynamics, particularly between the US and China [5]. 3. **Market Valuation**: The current market valuation is considered fair after a significant re-rating in 2025, with MSCI China's valuation increasing from approximately 10x to 13x, representing over a 30% uplift [6][10]. 4. **Earnings Growth Forecast**: Consensus forecasts a 15% earnings growth for MSCI China, while Morgan Stanley projects a more conservative 7% due to uncertainties in e-commerce recovery and lackluster housing sales [12]. 5. **Volatility Concerns**: The Chinese equity market has entered a higher-volatility state since October, but concerns about a major correction are minimal on a 12-month basis due to low correlation with the US market [13]. 6. **Potential Catalysts for Bullishness**: Positive developments that could enhance bullish sentiment include: - Improvement in US-China relations, highlighted by a recent call between the two presidents [15]. - More aggressive fiscal policies, particularly regarding housing inventory [15]. - Breakthroughs in technology that expand market opportunities for Chinese companies [16]. Other Important but Overlooked Content 1. **Foreign Investor Interest**: There is a notable increase in foreign investor interest in the Chinese equity market, as evidenced by oversubscribed events and positive feedback from institutional investors [17]. 2. **Market Dynamics**: The shift in global investor perception from viewing China as a deflationary story to one focused on innovation and technology breakthroughs is significant [10]. 3. **Cautious Optimism**: While there is a cautious optimism regarding inflows into the Chinese market, the need for clearer signs of consumption stabilization is emphasized [12][17]. This summary encapsulates the key insights and sentiments expressed during the conference call regarding the outlook for the Chinese equity market in 2026.

Treasury Secretary is joining us now. Uh Scott Besson, we we worked on that that segue. Uh Mr.. Treasury Secretary, I hope you liked it. How are you. Good good to see you.>> Good morning, Joe. Good to see you. >> You uh let's talk tariffs and and and uh since it's front and center for everyone with with this beginning now at at Scotas, you have said you're going and um you want to be in the front row.I think you're I think your chances are good if you say that's where you'd like to sit. Uh, look, Joe, I I t ...

RT Investing.com (@Investingcom)*BESSENT ON CHINA: 100% DOES NOT HAVE TO HAPPEN*BESSENT: US-CHINA RELATIONSHIP IS GOOD🇺🇸🇨🇳 ...

ED: THE PRESIDENT'S TRUE SOCIAL POST I'M GUESSING WAS SCHEDULED FOR 11:00 A. M. WE DO NOT KNOW HE SAID HE INTENDED TO MEET WITH XI IN TWO WEEKS BUT DOUBT IS NOT SEE A REASON TO DO SO.HE THREATENED TO INCREASE TARIFFS ON CHINESE GOODS AND SAID CHINA IS BECOMING INCREASINGLY HOSTILE. WHEN WE MET IN JANUARY YOU OPEN THE CONVERSATION WITH THE FORECAST ON WHERE YOU FELT THE RELATIONSHIP BETWEEN THE U.S. AND CHINA WAS GOING. WHERE YOUR RIGHT. -- WERE YOU RIGHT.PALMER: I THINK SO. IT IS TRUE WHEN IT COMES TO SEMI ...

US-China Relations & Trade - The US President expressed doubt about meeting with Xi Jinping and threatened increased tariffs on Chinese goods, citing increasing hostility from China [1] - The US is currently dependent on China for many things, necessitating re-industrialization [2] - A healthy US-China relationship should not be so dependent on China [3] Semiconductor & Rare Earth Supply Chain - The US needs its own rare earth supply and chip/computer manufacturing capabilities [3] - China possesses significant leverage in trade deals [3] Anduril's Supply Chain & Sanctions - Anduril has done a uniquely good job getting away from China [3] - Anduril and its executives are sanctioned by China, indicating a deliberate effort to avoid Chinese supply chains [4] Broader Economic & Defense Industry Concerns - Concerns exist regarding the broader economy and other defense companies' dependence on Chinese supply chains [5] - Aggressive moves are needed to avoid dependence on Chinese precursor chemicals, machinery, or processing, prioritizing US and allied supply chains [5]

Bloomberg's David Gura is back with us now. So this 15% tariff rate, put that into perspective for us and what kind of impact we might see here at home. >> So we've seen the floor rise over the last few weeks.There was a lot of talk about being like a 10% floor for these tariffs. Then after Japan, it moved up to to 15. So again, it's significant because the baseline before this was so much lower, >> 1.2%.Right. >> Exactly. And so in the Europe's case, a little bit higher than that.But we've heard from compa ...