- Trade war, the pandemic, and the Made in China 2025 initiative are stimulating new growth opportunities in China.
- Chinese consumers are shifting to favor domestic over international brands.
- Showing new competitiveness in scientific patents, China’s healthcare and technology companies are gaining market share.
As a college student studying economics, I learned the theory of comparative advantage and the benefits of free trade. In theory and reality, free trade increases the availability and quality of goods and reduces prices, resulting in higher growth. Overall, tariffs and trade wars create inefficiencies and a deadweight loss for consumers and governments. However, trade policies also create winning and losing companies within industries. We attempt to find new opportunities for Putnam Emerging Markets Fund and we are eyeing potential new winners in China. lll
