What commodities can benefit from US-Sino tension ?

Captain Caveman said:
These are just squabbles. Trump as we know put the economy above all else, China are highly focused of "saving face " and propaganda. Its all just sabre rattling in my view .
The banning Wechat is a huge topic here in china and the hypocrisy is just laughable from the Chinese side. There will an agreement in which both side claim they won.

Its an interesting topic , I have had these frank discussions several times in my class with managers, most are CPC members. Their attitude is that if Western governments do too much whinging and no action (hows the punishment for China going on due to the Virus going? That will be forgotten). For example they say if Western governments want nothing to do with China why are they scrambling all over themselves to come here, like Microsoft, Amazon, Tessla, AMD, Dell, Apple etc. They fully admit the playing field is not level by any means but say their Chairmen is the leader of China not the USA, his duty is to the Chinese people not to the world.

They look at the facts and ignore the tantrums Also they are baffled by the twitter wars and peoples need to vent all the time. It just doesn't comprehend with them . The other aspect is that they play the long game, they know Trump will go at some point where as the CPC are in place for decades to come. Trump like any president can reply on quick and empty promises, bluster to win elections (last time it was the Wall, this time it will be 'lets get China' folks) , whereas they XijinPing (like Putin) is their for life

They are certainly no militay threat but they are taking over the world by stealth and economic policy (e.g. Africa) while USA and Europe get caught up in internal squabbles.
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Well if China is in such a strong position and playing the "long" game, then why is banning WeChat a huge topic in China when Trump hasn't even banned it yet? ;)

Oh well, only time will tell...
 
for too many funds bought into Tencent, they don't like the share price decline
JSOP said:
Well if China is in such a strong position and playing the "long" game, then why is banning WeChat a huge topic in China when Trump hasn't even banned it yet? ;)

Oh well, only time will tell...
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lx008 said:
What commodities can benefit from US-Sino tension ?

seems crude oil should be one.

And what else in your opinion?
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Crude oil has yet to benefit from any US-Sino tensions. Gold should continue its upward trajectory as China and Russia move away from the USD and dollar-denominated assets.
 
another opinion, this one from my colleague John Thorpe:
You have to own things that survive currency debasement. Precious metals and U.S. Treasuries. Bid to covers should increase during the weekly auctions for many reasons in this current environment. The Fed’s own Jay Powell had said in March, “Our ability to quantitative ease and buy bonds is infinite” rather, there is no ceiling to what they are willing to do, and they are the number one customer of the U.S. Treasury department. Of course, China plans over the course of 100 years, we can only plan for 4 or 8 years.
 
JSOP said:
99% of the US Treasuries is still held by the American people.
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You are comparing oranges to cruise missiles.

Millions of American (potential sellers) are currently holding US Treasuries, while China represents just one (1) extremely large potential seller.

Again, if China wants its money back (1 Trillion US dollars), game over for the US. If Japan does the same thing then "margin call gentlemen !", so to speak.
That's what happens when the entire economy of a country is based on never-ending debts.

 
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