{"id":334,"date":"2019-01-13T06:59:36","date_gmt":"2019-01-13T06:59:36","guid":{"rendered":"http:\/\/forefrontnews.cn\/finance2news\/?p=334"},"modified":"2019-01-13T06:59:36","modified_gmt":"2019-01-13T06:59:36","slug":"why-china-and-india-are-the-bright-spots-for-investors","status":"publish","type":"post","link":"http:\/\/forefrontnews.cn\/?p=334","title":{"rendered":"Why China and India are the bright spots for investors"},"content":{"rendered":"<p class=\"mol-para-with-font\">Mention emerging markets and the talk inevitably turns to Trump.\u00a0<\/p>\n<p class=\"mol-para-with-font\">This is because, for better or for worse, the fortunes of the world\u2019s developing economies are closely linked to the outlook for the world\u2019s largest economy &#8211; America.<\/p>\n<p class=\"mol-para-with-font\">The two main reasons for this are trade and tapering.<\/p>\n<p>    <img decoding=\"async\" src=\"http:\/\/forefrontnews.cn\/finance2news\/wp-content\/uploads\/1221\/fqyufttgcqj.jpg\" \/><\/p>\n<p>    <img decoding=\"async\" src=\"http:\/\/forefrontnews.cn\/finance2news\/wp-content\/uploads\/1221\/1dyjtgvepkx.jpg\" \/><\/p>\n<p>    <img decoding=\"async\" src=\"http:\/\/forefrontnews.cn\/finance2news\/wp-content\/uploads\/1221\/sqcht2m2ug4.jpg\" \/><\/p>\n<p>    <img decoding=\"async\" src=\"http:\/\/forefrontnews.cn\/finance2news\/wp-content\/uploads\/1221\/1n1sekdryuf.jpg\" \/><\/p>\n<p>    <img decoding=\"async\" id=\"i-c81997a5854330e8\" src=\"http:\/\/forefrontnews.cn\/finance2news\/wp-content\/uploads\/1221\/1n1sekdryuf.jpg\" \/><\/p>\n<p class=\"imageCaption\">China spent more than $1tr on roads, railways, bridges and telecom networks last year alone<\/p>\n<p class=\"mol-para-with-font\">President Trump\u2019s \u2018Buy American and hire American\u2019 rhetoric has also raised concerns over China\u2019s vulnerability to American protectionism. But as Mark Williams of the Liontrust Asia Income Fund points out, while Trump\u2019s unpredictability may lead to some volatility, it is unlikely to cause a trade war with China.<\/p>\n<p class=\"mol-para-with-font\">There are three reasons for this:\u00a0<\/p>\n<p class=\"mol-para-with-font\">One: if Trump imposes China specific tariffs, most jobs lost in China will go to countries other than the US &#8211; like Vietnam, where many Chinese companies have already relocated given lower production costs.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Two: broader import duties will be inflationary, pushing up costs for US consumers &#8211; for example estimates are that making and assembling the components of an iPhone in the US will push up costs by up to $90, according to IHS Markit.<\/p>\n<p class=\"mol-para-with-font\">Finally, if China retaliates by placing tariffs on its biggest imports across the Pacific, namely planes, helicopters, spacecraft, cars and soy beans, this will hurt big business in the US, hurting companies like Boeing and General Motors.\u00a0<\/p>\n<p class=\"mol-para-with-font\">As for an embargo on soy beans (US-China trade accounts for 25 per cent of the world market) expect job losses in agricultural workforces in Mississippi, Arkansas, Ohio and Missouri &#8211; the very communities supportive of Trump.<\/p>\n<p class=\"mol-para-with-font\">As Williams puts it: &#8216;Protectionist measures against China are unlikely to significantly increase manufacturing jobs\u2026it will hurt American corporates and it will hurt American consumers.&#8217;<\/p>\n<p class=\"mol-para-with-font\">Maike Currie is Investment Director at Fidelity International and the author of The Search for Income \u2013 an investor\u2019s guide to income-paying investments. The views expressed are her own. @MaikeCurrie\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mention emerging markets and the talk inevitably turns to Trump.\u00a0 This is because, for better or for worse, the fortunes of the world\u2019s developing economies are closely linked to the&hellip; <\/p>\n","protected":false},"author":1,"featured_media":335,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[257],"tags":[171,173,172,92,27],"views":106,"_links":{"self":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/posts\/334"}],"collection":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=334"}],"version-history":[{"count":0,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/posts\/334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=\/wp\/v2\/media\/335"}],"wp:attachment":[{"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=334"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/forefrontnews.cn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}