Video Transcript
There’s no doubt we are in a rising geopolitical risk environment on the global level. Clamping down on China has become a bipartisan effort in the United States. This creates a risk factor for investors that has little to do with fundamentals. If you look at restrictions on semiconductor sales to China, for example, China could deal with the problem technically and practically over time, but it does raise bigger concerns about the investability of Chinese equities. A U.S.-based investor has to ask whether the U.S. government may eventually put China-based tech companies on the restricted entity list.
Disclosure
January 2023
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