Trump Is Set to Elevate China Hawks, Deepening Beijing Rift

Published On Nov 12, 2024, 1:57 AM

President-elect Donald Trump is expected to appoint several key figures known for their hardline stance on China, including Senator Marco Rubio as Secretary of State and Representative Mike Waltz as National Security Adviser. These appointments indicate a likely continuation of Trump's tough rhetoric against China, which may lead to heightened tensions between the two nations. China has already shown signs of concern, as its stock market has reacted negatively to these developments. Economists warn that potential tariffs on Chinese goods could drastically affect trade, especially as China is trying to stabilize its economy amidst internal challenges. The sentiment around this situation appears to be impacting investments linked to China.

Read full article

Stock Forecasts

SPYView SPY chart on TradingView

Negative

With Trump gearing up to impose significant tariffs on Chinese imports, the relationship between the US and China appears set for further deterioration. Investors may look to sectors that are less reliant on China, such as domestic technology firms, or energy and defense stocks that might benefit from increased military spending and a focus on national security.

FXIView FXI chart on TradingView

Negative

Investor sentiment around Chinese stocks is fleeting, as continued punitive measures and tariffs predictably harm their performance. Hong Kong stocks, for instance, are already experiencing downward pressure. The trend may continue, leading to further declines unless a diplomatic resolution is achieved. Investors should approach Chinese equities with caution.

Related News

S&P 500 futures are little changed after stocks close at record highs: Live updates

Nov 11, 2024, 6:01 PM

The Dow and S&P 500 closed at all-time highs on Monday, with both surpassing key levels as the trading day ended for the first time.

SPY
COIN
HD

S&P 500 seen reaching 10,000 by end of decade, spurred by 'animal spirits'

Nov 11, 2024, 4:23 PM

Strategists are growing increasingly positive about the outlook for stocks in Donald Trump's second term as president.

SPY

The House may soon belong to the GOP. Here's what party leaders say they'll do first.

Nov 11, 2024, 9:39 AM

The House of Representatives is likely to again be under GOP rule next year, cementing a unified control of power across Washington in 2025.

SPY