The power struggle between China and the United States has been an issue for investors for many years. Current developments are also encouraging: China is currently looking inward at the wave of regulations and strengthening the state, while the US government continues to attack infrastructure. Investors need to closely monitor developments and make their decisions based on how they affect competing companies and their business relationships.
The good news: there are investment opportunities as well. Jork Juner, chief economist at Union Investment and head of research and investment strategy, said: “Large companies are better than smaller companies, especially flexible companies that can experience or benefit from the small impact of conflict in their own business.” When investing in China or the United States, the respective state “Investors need to consider how important the company is to their interests,” the economist suggests. “Investors will have good cards despite Power Poker.”
Exciting new markets
Zener advises investors to be especially vigilant in areas of strategic importance, such as the healthcare sector or communications, including 5G mobile communication standards and semiconductor technology. Regional differences are also possible as a result of the conflict, but they also offer opportunities: “Countries such as Vietnam, India, Turkey or Mexico may benefit from (re) manufacturing relocation from China,” the expert says. (fp)
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