Issue 21: China Impact

20 March 2025

Equity valuations are attractive but choose carefully. China’s corporate profit and investment cycles suggest that the economy is yet to bottom.  Trading Post does expect a US-China bilateral trade deal to be struck and Europe to re-engage. This will bring greater business certainty which would be a positive. Neither companies nor investors can ignore China. Forget about decoupling and de-risking. Interdependencies and interlinkages are deepening. Today China is the world’s largest net creditor after Japan, and imports as much from the rest of the world as the US. Economic spillovers from China far exceed those from other G20 emerging markets and are comparable to the US.