LONDON, United Kingdom – Tensions between the West and China are rising, from tit-for-tat trade tariffs to tech rivalry and spying allegations.
A stronger dollar can export inflation to resource-importing nations in Europe by forcing them to pay more for commodities priced in dollars.Washington is pushing “friendshoring” – the idea of replacing China’s role in supply chains with friendly nations.Mongolia is seeking US investment in mining rare earths, materials used in high-tech products such as smartphones. The Philippines is courting US infrastructure investment.
“India is a very large opportunity,” said Christopher Rossbach, chief investment officer at asset manager J. Stern. “The global companies we are invested in are working on it.” US subsidies for domestic semiconductor manufacturing have boosted Intel’s shares. But the performance of big US tech stocks and global share indices are vulnerable to signs of Chinese retaliation.