What China is 'signaling' by restricting US investments

00:00 Speaker A

And to immoderate degree, we're already seeing grounds that things are antithetic this clip around. We person quality of China blocking disconnected investments into the United States, for example, perchance allies overseas teaming up against the US. To what grade is that a headwind that you are acrophobic about?

00:26 Scott Minerd

Well, you know, I I bash deliberation that there's been nationalist information concerns astir Chinese concern successful the United States for a while. So the level has not been significant. So I'm not definite that uh, erstwhile you erstwhile you benignant of look done the numbers is that significant, but I deliberation it is simply a signaling uh, that uh the Chinese are sending astir the mode that they mightiness respond to this. And, you know, I deliberation we each cognize that the Chinese are highly susceptible uh to this argumentation due to the fact that we are their biggest market. And uh they bash beryllium uh connected exports arsenic the cardinal operator of their uh economical health. And truthful if anyone is going to beryllium adversely affected uh successful a scaled way, it volition beryllium the Chinese. Now, determination are determination are tons of reasons to judge that determination are going to beryllium a batch of mistakes made arsenic they instrumentality this policy. We've astir apt already seen the backmost and forths astir the righteousness of the tariffs with uh with Canada, for example, and what the policies are with Mexico. So I deliberation that we're going to person to hold rather a portion to spot immoderate the longer word much unchangeable acceptable of policies uh from a tariff perspective. And that means continued uncertainty.

02:52 Speaker A

So however bash you put successful that environment, past Scott? If uncertainty is present certainty.

03:01 Scott Minerd

Uh, precise carefully. Very carefully.