China's stimulus-driven recovery will provide a boost to the global business cycle. Starting in 2021 and perhaps sooner, around the world, industrial stocks will benefit from China's increased cyclical and capital expenditure.
It's looking like China is FIFO on Covid - that is first in, first out. Cases remain at record lows and signs Chinese consumers are relieving pent up demand abound. For example, car sales in August alone increased 8.9% year-on-year.
2021 marks the CPC's centenary. The Communist party's 100-year goal is to "build a moderately prosperous society in all respects." Covid deferred the dream and the party is doing everything it can policy-wise to make up for lost time.
Indeed, post-Covid stimulus is already lifting the country's real estate spending, tech outlays and retail sales.
China's growth will benefit industrial companies as well as the commodities that undergird such growth.
While Quish takes a stand on human-rights by not taking positions in Chinese-government owned companies, it would be folly to not take into account the impact of the world's second largest economy on markets generally.
(It does feel a bit like throwing a stone in a glass house to be critical of Chinese human rights in light of our own country's abuses. The difference is we are - generally and usually - free to criticize our government.)
