BY TYLER DURDEN
THURSDAY, SEP 07, 2023 – 11:15 AM
By Peter Tchir of Academy Securities
I have been incredibly focused on the need for China to sell more of its own brands, if they hope to escape the economic malaise they have slipped into. China’s Next Move.
I’ve been more focused on their attempts to sell their brands, largely into emerging market countries with whom they have large trade deficits with. But it has not been limited to that, and the success and support that Huawei had is something to be watched closely.
This morning markets are being hit by stories that Chinese agencies will ban the use of certain phones for those agencies.
Breaking into and having success selling into China has always been tough. Will it get even more difficult if China decides that another way to sell more of its brands is to further restrict the selling opportunity of foreign brands within China?
China has some economic difficulties, and their “best” way out is to sell more of their brands (since it will be difficult to convince manufacturers to return in droves).
This twist, of potentially denying domestic markets to “foreign” brands, would presumably increase sales of Chinese brands.
I am convinced that not challenging the Made By China trade, could be biggest risk to investments and corporate strategies in the coming year(s).