Summary:

In America, there are a lot of misconceptions about many aspects of Chinese culture and economic policy. These have become especially apparent over the last two years during the Covid-19 pandemic. However, many investors are curious about the opportunities to be found in China’s fast-growing market but while factors like the country’s political structure, ongoing trade wars with the US, and regulatory differences shouldn’t deter investment, it is important to understand the risks involved when it comes to investing in China.

Here to give us an insider’s perspective is Andy Rothman, an investment strategist at Matthews Asia, the largest dedicated active investor in Asia and China in the United States. Before heading to Matthews, Andy spent more than 20 years living and working in China, first as a student, then as an American diplomat. At Matthews, Andy is primarily responsible for developing research focused on China’s economic and political developments.

In this episode, Andy discusses the major shifts that have been happening in the Chinese economy both pre- and post-pandemic, the changing role of private companies in China, and his take on US/China economic policy and regulation.

Highlights:

• A brief history of the modern Chinese economy (03:08)
• The changing role of China’s public companies (04:54)
• How Covid-19 affected China’s role in the global supply chain (07:25)
• China’s shift away from a manufacturing economy (09:47)
• Andy’s take on the status of the Chinese residential property market (11:19)
• Andy describes the easing cycle China is going through this year (16:09)
• Factors that will affect whether Chinese public companies list in China or the US (18:25)
• Andy describes the two “weather patters” occurring in the Chinese economy (21:33)
• Positive steps from the Biden Administration in US/Chine policy (24:58)
• Andy’s take on China’s relationship to the Russia/Ukraine conflict (26:43)
• Wrap Up (28:41)

Links:

ICR Twitter

ICR LinkedIn

ICR Website

Andy Rothman LinkedIn

Andy Rothman Bio

Andy Rothman Twitter

Matthews Asia Website

Matthews Asia LinkedIn

Feedback:

If you have questions about the show, or have a topic in mind you'd like discussed in future episodes, email our producer, andrew@lowerstreet.co.