{"id":2359482,"date":"2021-09-06T12:08:23","date_gmt":"2021-09-06T16:08:23","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2359482"},"modified":"2021-09-25T11:07:55","modified_gmt":"2021-09-25T15:07:55","slug":"china-is-winning-the-economic-war","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/china-is-winning-the-economic-war\/","title":{"rendered":"China Is Winning The Economic War"},"content":{"rendered":"<p>In his<em> <strong>Daily Market Notes<\/strong><\/em> report\u00a0to <a href=\"https:\/\/www.valuewalk.com\/value-investing\/\">investors<\/a>, while commenting on China winning the economic war,\u00a0Louis Navellier wrote:<\/p>\n\n\t<!-- Begin Mailigen Signup Form -->\n\t<script type=\"text\/javascript\">\n\t\tif (typeof jQuery == 'undefined') {\n\t\t\tdocument.write('<scr' + 'ipt type=\"text\/javascript\" src=\"https:\/\/list.mailigen.com\/js\/jquery.js\"><\/scr' + 'ipt>');\n\t\t}\n\t<\/script>\n\t<script language=\"javascript\" type=\"text\/javascript\" src=\"https:\/\/list.mailigen.com\/js\/scripts.js\"><\/script>\n\t<script language=\"javascript\" type=\"text\/javascript\" src=\"https:\/\/list.mailigen.com\/js\/subscribe2.js\"><\/script>\n\t<div id=\"MG-placeholder\">\n\t<style>.first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important}\n\n\tform.ebook-styles .error,\n\tform.ebook-styles #error {\n\t\tcolor:#d00;\n\t}\n\tform.ebook-styles .formfields h1,\n\tform.ebook-styles .formfields #mg-logo,\n\tform.ebook-styles .formfields #mg-footer {\n\t\tdisplay: none;\n\t}\n\tform.ebook-styles .formfields {\n\t\tfont-size: 12px;\n\t}\n\tform.ebook-styles .formfields p {\n\t\tmargin: 4px 0;\n\t}\n\t<\/style>\n<div style=\"background:#eee;display:block;overflow:hidden;margin-bottom:24px;padding:40px;\">\n<div class=\"two-thirds first\">\n<p style=\"font-size:22px;margin:0 0 10px;\">Get The Full Walter Schloss Series in PDF<\/p>\n\t<p style=\"line-height:1.4;margin-bottom:0;\">Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.<\/p>\n\t<form action=\"https:\/\/valuewalk.us4.list-manage.com\/subscribe\/post?u=c3eb7a1d092fc854772c834e0&amp;id=f6f5bdb8b5\" method=\"post\" id=\"mc-embedded-subscribe-form\" name=\"mc-embedded-subscribe-form\" class=\"validate\" target=\"_blank\" novalidate>\n <div id=\"mc_embed_signup_scroll\">\n \n\t\t\t\t<div class=\"af-element mc-field-group \">\n\t\t\t\t\t<div class=\"af-textWrap c1\"><input type=\"email\" value=\"\" placeholder='Email Address' name=\"EMAIL\" class=\"required af-element email\" id=\"mce-EMAIL\"><\/div>\n\t\t\t\t\t<div class=\"af-clear\"><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"af-element buttonContainer\">\n\t\t\t\t\t<input type=\"submit\" value=\"Subscribe\" name=\"subscribe\" id=\"mc-embedded-subscribe\" class=\"button\">\n\t\t\t\t<\/div>\n \n \n\t<div id=\"mce-responses\" class=\"clear\">\n\t\t<div class=\"response\" id=\"mce-error-response\" style=\"display:none\"><\/div>\n\t\t<div class=\"response\" id=\"mce-success-response\" style=\"display:none\"><\/div>\n\t<\/div>    <!-- real people should not fill this in and expect good things - do not remove this or risk form bot signups-->\n    <div style=\"position: absolute; left: -5000px;\" aria-hidden=\"true\"><input type=\"text\" name=\"b_c3eb7a1d092fc854772c834e0_f6f5bdb8b5\" tabindex=\"-1\" value=\"\"><\/div>\n    \n    <\/div>\n\t<\/form>\n\t<script type='text\/javascript' src='\/\/s3.amazonaws.com\/downloads.mailchimp.com\/js\/mc-validate.js'><\/script><script type='text\/javascript'>(function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true);<\/script>\n<\/div>\n<div class=\"one-third\">\n<img decoding=\"async\" src=\"https:\/\/www.valuewalk.com\/wp-content\/uploads\/2017\/06\/Walter-Schloss_FINAL_JPG.jpg\" alt=\"Walter Schloss eBook\" style=\"width:100%; height:auto\">\n<\/div><\/div><\/div><!-- End Mailigen Signup Form -->\n<p style=\"text-align: center\"><a href=\"https:\/\/valuewalkpremium.com\/q2-2021-hedge-fund-letters\/\" target=\"_blank\"><em><strong>Q2 2021 hedge fund letters, conferences and more<\/strong><\/em><\/a><\/p>\n<div class=\"ca-widget\" data-token=\"s90dd0cac657\"><\/div>\n<h2>ISM\/Jobs Data<\/h2>\n<p><strong>The ISM on Friday reported that its non-manufacturing, services index decelerated<\/strong> to 61.7 in August, down from an all-time high of 64.1 in July.\u00a0 The good news is that all 17 industries surveyed expanded in August and this was the 15th straight month the ISM service index reported an expansion (above 50).\u00a0 One of reasons that the <a href=\"https:\/\/www.valuewalk.com\/august-2021-us-employment-report-graded-c\/\">ISM<\/a> services index decelerated was that the business activity component decelerated to 60.1 in August, down from 67 in July.\u00a0 So <strong>the good news is that the service sector is still growing, but at a slower pace<\/strong>.<\/p>\n<p>Overall, <strong>in the wake of the disappointing August payroll report, the Fed\u2019s Federal Open Market Committee (<a href=\"https:\/\/www.valuewalk.com\/fomc-minutes-reveal-infighting\/\">FOMC<\/a>) statement on September 22nd will be critical<\/strong>.\u00a0 Interestingly, Treasury bond yields \u201cspiked\u201d after the August payroll report.\u00a0 However, the FOMC may cite the Covid-19 Delta variant as an excuse to \u201ckick the can down the road\u201d and defer and tapering announcement. \u00a0<strong>The fact that the Fed is failing in its unemployment mandate and has been unable to replace the 5.3 million jobs lost since the pandemic commenced likely irritates the doves on the FOMC<\/strong>.\u00a0 However, the hawks on the FOMC are alarmed over higher inflation and know the Fed cannot fight market rates long-term.\u00a0 As a result, the upcoming September FOMC statement will be closely scrutinized.<\/p>\n<p>The U.S. military successfully left <a href=\"https:\/\/www.valuewalk.com\/putting-business-superpowersto-use-in-times-of-need\/\">Afghanistan<\/a> this week after evacuating approximately 123,000 people without a second terrorist attack.\u00a0 <strong>The other good news is a \u201cpeace dividend,\u201d similar to the late 1990s, should help the stock market.<\/strong><\/p>\n<h2>China\u2019s Rising Tide<\/h2>\n<p><strong>The new wars are now economic in nature and China is winning.\u00a0<\/strong> We are reminded of the current economic wars every time we deal with <a href=\"https:\/\/www.valuewalk.com\/china-deal-phase-one\/\">Covid-19<\/a> and are reminded of port bottlenecks.\u00a0 The Green Agenda that is being pushed further empowers China, since the most solar panels are largely by the Chinese.<\/p>\n<p>In EV batteries, Chinese company <strong>Contemporary Amperex Technology (CATL) produces cheaper, but less efficient iron-phosphate batteries that Tesla is utilizing.<\/strong> \u00a0Due to China\u2019s dominance and control of solar panels, lithium batteries as well as raw materials, the Green Agenda is now being controlled by China, who is well positioned to continue to win more economic wars.<\/p>\n<p>In the U.S. we do not have central economic policy like China.\u00a0 Instead, the <strong>federal government and many states pass tax incentives that incentive businesses that all too often then outsource to China<\/strong>.\u00a0 The belief that the U.S. can compete with China in industries they dominate is a pipe dream, since the U.S. does not have the cheap <a href=\"https:\/\/www.valuewalk.com\/worlds-first-electric-ship-sail-late-2021\/\">electricity<\/a> (from coal), the labor camps (the Uighurs) nor the will to process raw rare earth commodities to beat China in the industries they dominate.\u00a0 <strong>As a result, the Biden Administration has its hands full with China, which may explain why its has not rescinded the tariffs that the Trump Administration imposed on China.<\/strong><\/p>\n<p>It is never a good idea to bet against America, but <strong>outsourcing pollution and forced labor to China to make the solar panels that California now mandates on new residential construction is na\u00efve and is already having profound consequences<\/strong>.\u00a0 Furthermore, the powerwalls that many California residents install to hold their solar electricity before selling it back to the electric grid predominately utilize iron-phosphate batteries from CATL in China.\u00a0 <strong>So right now, if I add up the industries that China dominates, as far as the Green Agenda is concerned, China has virtually obliterated the U.S<\/strong>.<\/p>\n<p>Speaking of <strong>China<\/strong>, the shocking news this week was that the Chinese National Bureau of Statistics announced that its non-manufacturing, <strong>service sector index plunged to 47.5 in August<\/strong>, down from 53.3 in July.\u00a0 The Delta variant of Covid-19 was largely responsible for this massive contraction.\u00a0 I should add that any reading below 50 signals a contraction.\u00a0 Since China\u2019s manufacturing index was at 50.1 in August, down from 50.4 in July, <strong>China is now dangerously close to slipping into a recession.<\/strong><\/p>\n<h2>Shipping Opportunities<\/h2>\n<p><strong>The port bottlenecks are now worse than ever due to China\u2019s woes and were complicated further by Hurricane Ida<\/strong>, because ports in Louisiana to are expected to remain closed for at least several days until power is restored.\u00a0 There were reported to be 44 containerships off the coast of Southern California waiting for the Ports of Long Beach and Los Angeles to have room for them to unload their containers.\u00a0 The average wait for a <a href=\"https:\/\/www.valuewalk.com\/china-is-dangerously-close-to-slipping-into-a-recession\/\">container ship<\/a> to unload its goods is now 7.6 days in Southern California, where the Ports of Long Beach and Los Angeles account for about one-third of U.S. imports.\u00a0 Fortunately, I recommend a logistic company (<strong>EXPD<\/strong>) and plenty of shipping companies (<strong>CMRE, DAC, EDRY, ESEA, MATK, NMM, SBLK &amp; TGH<\/strong>).<\/p>\n<h2>Odd News<\/h2>\n<p>A Missouri nature center is throwing a \"sweet 16\" birthday party for one of its most unusual resident animals: a two-headed snake. The Cape Girardeau Conservation Nature Center, which is operated by the Missouri Department of Conservation, said the female black rat snake, which has two heads with fully functional brains, will turn 16 on Saturday and visitors are being invited to join the celebration.<\/p>\n ","protected":false},"excerpt":{"rendered":"<p>In his Daily Market Notes report\u00a0to investors, while commenting on China winning the economic war,\u00a0Louis Navellier wrote: Q2 2021 hedge &#8230; <a title=\"China Is Winning The Economic War\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/china-is-winning-the-economic-war\/\" aria-label=\"More on China Is Winning The Economic War\">Read more<\/a><\/p>\n","protected":false},"author":21886,"featured_media":2257349,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640],"tags":[590128],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2359482"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/21886"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2359482"}],"version-history":[{"count":0,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2359482\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2257349"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2359482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2359482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2359482"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2359482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}