G2 View on US & China

US/China is like UK/US pre-World War I – in the next several decades, whether or not there will be a World War III, China will gain rising importance while US will relatively lose its influence but still remain a major economic and military superpower. The recent Huawei and ZTE incidents as well as the ongoing US/China trade war are just the beginning of this struggle for the next decades.

The process of achieving such bi-polar structure, with EU and Japan inevitably downgraded to 2nd Tier force in the meantime, could bring significant implication to the world economy and politics. The paths China and US are to take are equally important as the ultimate results – in our business, thinking over such issues will not necessarily lead to any immediate investment decision. Nevertheless, while we focus on risks on trend (6-12Ms) and trade (1-3Ms) basis for our business operation, we are fully aware of the very importance of a variety of tail (3-5+ yrs) risk, THE biggest of which, in our opinion, is the one associated with how the Sino-US relationship will evolve in next 10-15 years.

Our G2 investment strategy is established aiming to profit from exactly these once-in-a-life opportunities as well as challenges.

 

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