China -and the new world dis-order.

China may/should well be a beneficiary in time on this new World (dis) order. Yet I dare to observe, once again brought on by the US.

China has a few very big things going for it: 1) it has accumulated the world’s largest excess reserve of oil—about 1.2 billion barrels, equivalent to nearly four months of seaborne imports—as it has anticipated this risk. 2) it has spent the past 30 years developing alternative energy sources. Presently more than half of all cars sold in China today are electric, 3) it is home to nearly half of the nuclear reactors under construction worldwide, while 4) almost all of the country’s growth in electricity demand has been met with green-energy sources.

Further China produces more than 60% of the world’s wind turbines, more than 70% of the world’s lithium-ion batteries and electric vehicles, more than 80% of the world’s solar panels, and about 90% of processed rare-earth minerals that are so essential inputs to those technologies.  Surely formidable in this new world now of likely 90-100$ oil to persist.

Yet, many Western and well as most Swiss-bank fund managers still seem rather quietly agnostic to China investments, even while its stock market trades at half the valuation of the the US which now is fair to say, a continued war mongerer.  It will be interesting to see how long that keeps up.  In the meantime my view here, since February 2024,  is to keep dollar cost averaging every month (DCA), into China ETF funds.