Will China stocks perform well in 2021?

 Mr. Tan

Will the trade tension between US and China reduce after the Biden administration takes over? The analysts expect that the tariffs will remain as the new administration will find it difficult to scale them back.

What will be the impact on China stocks?

My reply.
I agree that the tariffs will remain for several months after Biden takes over. It will be difficult for the new administration to cut the tariffs as the general public thinks that they are necessary to reduce the imports from China.

However, I believe that the new president will not behave in the erratic manner as the previous president. This will help to calm down tensions and escalation of the trade war.

I also expect that there will be new rounds of talks and that China will take a more accommodating position to US requests. The quid pro quo will allow the tariffs to reduce, and get the support of the American public.

On the whole, I expect that the trade tensions will be over after six months.

I expect China stocks to perform well in 2021, partly in anticipation of the relaxation of the trade tensions and following actual agreements being made between the two countries. 

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