China Will Win Trade War And Be Tech Independent In 7 Years, Analyst Predicts
China won't only beat president Donald Trump at the trade war he ignited in 2018, but will also become technologically independent from the United States in as little as seven years from today.
This stark, if stunning, assessment of China’s ultimate victory over Trump was made by David Roche, the outspoken president and chief strategist of Independent Strategy. This 20 year-old firm provides institutional investors with research on worldwide strategy and asset allocation.
Asked point blank which country he thought would win the increasingly damaging trade war, Roche told CNBC’s "Squawk Box," “Oh, China wins.”
He went on to describe Trump’s trade war as “a conflict between a rising global power (China) and a declining global power (the United States).”
“Thats what it’s all about. It’s not just about trade,” Roche pointed out.
“It’s about technology. It’s about the free flow of ideas ... and it’s rapidly becoming about the free flow of individuals. It’s a really wide conflict and it’s simply not going to go away.”
Roche predicted the end to Trump’s trade war is nowhere in sight, echoing the CNBC host’s observation the trade war might go on for years. Trump’s trade war will also damage, perhaps irreversibly, the trust China has in the U.S. It will also force China to develop its technologies faster than it should have.
“China will never trust the United States again, and it will achieve its technology independence within seven years,” said Roche.
Today, China remains dependent on the U.S. for advanced technologies. China relies heavily on U.S. suppliers for vital electronic components such as chips and mobile phone modems.
Roche has made a name for himself by being controversial, especially when it comes to strategic investments. In April, he asserted globalization is waning and there’s nothing a U.S.-China trade deal can do to reverse this phenomenon.
This time around, however, Roche confidently made his prediction of China winning Trump’s trade war after assessing China’s future economic conditions. He said China will move its growth engine into developing domestically its own value added chain "and importing a lot less from the United States, which we’re already seeing."
He said the way to grow for China will be to stoke domestic demand and domestic output and create higher value added to meet demand.
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