In our latest podcast, investment managers Des Armstrong and Tom Miedema discuss their recent research trip to China and Taiwan. With ongoing headlines around geopolitical tensions and the end of China’s strict zero-Covid policy, it was a particularly timely visit.
Despite one company opening with “Why are you guys here?”, Tom and Des were warmly welcomed, gleaning insights only face-to-face visits can offer. Notably, they were struck by the disconnect between media reports in the West and the reality on the streets of Shanghai. In spite of a long Covid lockdown, it is still a vibrant, digitised, economy with much to be optimistic about.
Similarly, in Taiwan, where they met with numerous companies, no one talked of an impending war. Instead, their conversations tended to centre on supply chains, as the likes of TSMC expand further beyond the Taiwanese shores.
Key takeaways
- China’s economy is not firing on all cylinders – weak consumer, real estate problems, youth unemployment – but there are pockets of strength, such as renewables and electric vehicles.
- The world is on a clear path to decoupling supply chains, but it is likely to be a decades-long process.
- Regardless of supply chain shifts, China will continue to play a major role with world leading companies such as WuXi, Cathay Biotech, and Tofflon.
- Remaining technologically relevant is going to be what’s most important for ensuring the position of TSMC, and potentially even Taiwan.
Important Information
This podcast and transcript are provided for general information only and should not be construed as investment advice or a recommendation. This information does not represent and must not be construed as an offer or a solicitation of an offer to buy or sell securities, commodities and/or any other financial instruments or products. This podcast and document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such an offer or solicitation is unlawful or not authorised.
Stock Examples
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