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More than two months into the Biden administration, some important contours of the post-Trump approach to US-China relations have begun to crystallize.
The president’s foreign policy team is coming together (including key positions for US-China policy), US military strategy is becoming clearer, and supply-chain management is a growing area of concern. Meanwhile, government reports released earlier this month — on artificial intelligence, trade policy, and national security priorities — have helped to better define the administration’s thinking on…
In this 25-minute video, Geopolitical Strategist Thomas Mucha, Macro Strategist Michael Medeiros, and Multi-Asset Strategist Nanette Abuhoff Jacobson explore the investment implications of Biden’s domestic and foreign policy agenda and opine on which asset classes, factors, and industries they expect to outperform in this new environment.
Bilateral relations between the US and China have gone from bad to worse in recent months.
On 12 November 2020, President Trump issued an executive order (EO) that prohibits US investors from transacting in publicly traded securities of entities classified by the Department of Defense as “Communist Chinese military companies (CCMCs).” Slated to take effect on 11 January 2021, the EO fueled my concern that the outgoing administration would attempt to derail the US-China relationship before President-elect Biden takes office (on 20 January). I wouldn’t be surprised to see further efforts on this front before Trump leaves the White House.
So with that as a springboard, how might the fractured US-China dynamic evolve during Biden’s upcoming first term? I envision four potential paths…