There is a trend unfolding. The US (among others) are looking to diversify supply-chain manufacturing from China. This could bring about a change in the global economic order. Where lower cost manufacturing can no longer be a complacent driver of return.
Take a look at what’s happened to Chinese manufacturing exports to the US since the trade war in 2018.
Remember, once manufacturing moves out of China, it is more difficult to get it back. Tariffs of 25% or more make factories less competitive.
At present, we’re not allocating capital to China. There are certainly areas where opportunities still exist. However, within our Lifetime Wealth framework, the priority is clear: ownership transparency and the long‑term protection of investor capital. If a market environment allows the state to exert influence or control over companies listed on local exchanges, it falls outside our mandate.
Innovative companies in the US and Europe, able to manufacture locally and drive increasing return on capital through productivity, could be an ideal investment pick.
Through my network, I came across this American tech business with a fascinating angle…
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Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.