Geopolitical chance has likewise increased. Trump’s subsequent attempts to re-establish relations with Russia have raised concerns about a so-called “reverse Nixon” walk, which refers to former US president Richard Nixon’s choice to fix relations with Beijing in order to remove the Soviet Union.
Of course, China is the greatest attack this time, which could cause problems far beyond tariffs.
What does the resilience of Chinese stocks mean for the US exceptionalism theory that the dollar and British equities may continue to outperform, which global asset managers largely but resolutely supported in 2025?
Breathe ROOM FOR CHINA
Even if the Trump presidency views Beijing as the actual enemy, one possible reason is that a disorganized White House policy and priorities give it the much-needed breathing space to bolster its tech boom. By the time Trump refocuses, it will be too late to stop China’s development in electronics, artificial intelligence, and fresh strength.
Trump’s top priority right now doesn’t seem to be slowing its adversary down in the technology race. The leader has a lot of work to do. He needs to create a peace in Ukraine, reduce the number of national employees, and stop illegal immigration. Americans are now becoming more and more determined to reduce prices as well.