Straight Talk Asia

A lot has been written in the last few days about the impact of what US President Donald Trump calls “reciprocal tariffs” on the world economy, the US Dollar, US inflation, the US Federal Reserve’s interest rate cuts, gold, oil, etc. Much of Trump’s reciprocal tariffs policy could be attributed to the controversial anti-trade economist and writer Peter Navarro, whom Trump again appointed to his team. He famously wrote a book, “Death By China”, in which he posited his bizarre theories on trade. 

In this note, APS Chief Strategist Wong Kok Hoi addresses the near-term implications for China tech stocks, China’s exports to the US, US companies like Apple, and China A shares, as well as the long-term consequences for the notion of China Plus One, the US dollar’s continued dominance, America’s sovereign premium, and countries’ view of China as a predictable and rational trading partner.

Lastly, he will elaborate on APS portfolio strategy, whereby we have been positioned towards stocks of companies with little exposure to the US for quite some time already. He touches on EV stocks, Economic Alpha stocks, semiconductor stocks, Temu’s parent, Top 3 China AI company Alibaba, Tencent, and seizing opportunities to add names.