The US-China Trade War: A Big Threat for Investing in China?

Since US-China trade war beginning last year, the two side held several rounds negotiation for more than one year. When everyone think the war will be ended in May, the US government posed strong malicious proposition towards Chinese high tech companies, such as Huawei, Hikivison, Yitu, DaHua, etc.  The prohibition of purchasing CPU, software almost killed ZTE last year. 

There are many news about US-China trade war, and it’s very clear now that the war will not end in a short time. So under this background, which concerns me most is that is this a big threat for investing in China.

After several months of thinking and wittness, my conclusion is that no need to be panick for the future. The reasons are as follows:

  1. Since the begining of the trade war, the imports and exports of China kept growing, which is not be affected that much as experts predicted. By contrast, imports and exports of USA still declines in the same time. As the worlds steps into the globalization, we will not go backwards to the isolation era;
  2. The largre number of young people in China are eagering for the wealth, and have the passion to create values for the world, instead, the people of USA needs to import a lot of goods from China, since they don’t have the resources and passion to manufacture, and willing to sacrifice their life for money;
  3. With the 40 years development of Open and Reform policy, 1.4 billion people have more money than ever before, it’s a huge market for any products. The foreign trade is not as much important to GDP than before;

With the 3 majors reason, I have faith in the long term growth in China, because I belive in the Chinese people, and huge potential economy growth.

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