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If China invades Taiwan...we are ****ed.
No, China will be ****ed. It might be ****ed anyway. Western-oriented corporations are waking up to the fact that Xi and Putin are really no different. They are hedging their bets by diversifying supply chains out of China such that customers in Europe and North America will be supplied locally when it comes to critical goods. They detected a change in China’s attitude towards foreign investment years ago, and Covid accelerated the process. But I’m guessing Xi and Putin’s stupidity will also cause corporations to reevaluate any new investments in China. We’re returning to a bi-polar geopolitical order, with totalitarian states like China and Russia on one end and Western democracies, led by the U.S. and the E.U., on the other. Whatever investment occurs will be for Chinese domestic consumption.
Until today the disinvestment’s been obvious. Chinese stocks are rallying today because Beijing finally realized they have a problem and came out with a statement basically saying, “Whoa, fellas! Stick around! This is going to be a great party!” Personally, I wouldn’t touch any Chinese stock with a 10-foot pole. I mean, I own shares in an Asia-Pacific ETF that invests in China, but that’s it.