Geopolitical risk has also flared up. Trump’s recent attempts to reset relations with Russia have led to worries of a so-called “reverse Nixon” move, referring to former US President Richard Nixon’s decision in the 1970s to repair relations with Beijing in order to isolate the Soviet Union.
This time, of course, the ultimate adversary is not Russia, but China, which could spell trouble far beyond tariffs.
Why are Chinese stocks so resilient, and what does this mean to the US exceptionalism thesis that the dollar and American equities will continue to outperform – which global asset managers overwhelmingly, but apprehensively, embraced entering 2025?
BREATHING ROOM FOR CHINA
One possible explanation is that even if the Trump administration sees Beijing as the real foe, a chaotic implementation of priorities and policies at the White House gives China the much-needed breathing room to fortify its tech boom. By the time Trump refocuses, it will be too late to halt China’s advance in artificial intelligence, semiconductors and new energy.
Slowing its rival down in the tech race doesn’t seem to be on Trump’s top agenda right now. The president has a lot on his plate. He needs to engineer a ceasefire in Ukraine, slim the federal workforce and halt illegal immigration. Now, Americans are growing more insistent about bringing down inflation, too.
https://www.channelnewsasia.com/commentary/china-tech-stock-rally-hsi-trump-trade-tariff-4975606
