Although China seems to have avoided a much-feared hard landing and is now widely regarded as stable and benefitting from slow and steady reforms, Trump’s protectionist Sinophobia rhetoric has been bolstered by the appointment of Peter Navarro.
This combined with a weak yuan and slow growth, has refuelled fears regarding the biggest tiger economy.
But what if not only these fears are unfounded, but US protectionism will actually benefit China?
This was the position taken by chief executive of BNP Paribas Investment Partners Adeline NG when speaking to delegates at recent London conference held by our sister publication Portfolio Adviser.
She said: “China has a small export market and won’t be hugely damaged by protectionism in the short term.
“And in the long term China will benefit from the economic and political vacuum left by the US becoming the clear leader in the region.”
