China In Touch, 16 January 2019, Issue 244

Welcome to 2019 where its increasingly clear that the America First policies pursued by Donald Trump in 2018 seem to be aimed at creating a bipolar financial world, with China at one end and the US at the other. For investors this signals more market volatility in 2019 with extreme swings. For the NT it may make attracting Chinese investment more difficult.

One consequence will be smaller financial flows between China and the US. The downgrade in Apple results is just the first precursor to this ongoing impact. Investors can expect more China related revenue shocks to US companies over the coming months of the reporting season.


China In Touch, 19 December 2018, Issue 243

Extraterritoriality – is a difficult word to pronounce, but it has huge implications in China because its central to the concept of humiliation by foreign powers in the 19th century. It meant that people living in the foreign concession areas like Shanghai, Tianjin and Guangzhou were not subject to Chinese law. It meant that foreigners, such as missionaries, operating outside of the concession areas were also not subject to Chinese law. It was among the worst aspects of imperialism.

Now its back.


China In Touch, 5 December 2018, Issue 242

Ten years ago I visited the Qian Hai  Special development zone on Shenzhen. It was tidal mudflats, heavy earthmoving machinery, ramps of dirt, massive earthworks and a dream.

 I visited Qian Hai again last week after speaking at  the APEC SME summit in Shenzhen. It is a modern, thriving, well developed, high tech eco-city that challenges the best developments in the world. When we look to cities of the future this is what they will look like.

I had an opportunity to have a closer look at the product development of the world’s hottest AI company, Sense Time. They are entrusted by the Ministry of Science and Technology of China to establish the National Open Innovation Platform for Next-Generation Artificial Intelligence on Intelligent Vision.



China In Touch, 21 November 2018, Issue 241

So what was the point of the China International Import Expo (CIIE)? A reaffirmation that China is engaged with the world of international trade? A demonstration of Chinas reliance on imports? Remember, this wasn’t China show casing its exports to the world. This was 158 foreign countries vying with each other to show how engaged they are with China.

The most significant  point of CIIE was to bring home just how important China is to the continued prosperity of the 158 counties who participated. Without free and open trade with China their economies would collapse. This was a superb demonstration of co-dependency.


China In Touch, 7 November 2018, Issue 240

The escalating trade war between the US and China may appear as a distant problem, far removed from everyday decision making. It’s a comforting, complacent, and inaccurate thought. Like it or not, it is already having a  direct impact on investment decisions and capital allocation.

Wednesday last week saw the listing of a new China-linked company on the stock exchange. The IPO price was reasonable and yet I hesitated about taking a stake in this company. I hesitated because investors like myself worry it could be only a matter of time before third parties  come under pressure to show support for  the US  by introducing their own restrictions on trade with China.