To The Moon

China Cuts Cooperation with US Following Pelosi’s Taiwan Visit: How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈(Part 3) $Alibaba(BABA)$ Following Nancy Pelosi’s visit to Taiwan 🇹🇼 earlier this week, relations between the world’s 2 largest economies are further strained with China 🇨🇳 halting ties with the US 🇺🇸 on a range of critical issues as a sure sign of retaliation. China’s Foreign Ministry announced: ❌🤝❌ (1) Cancellation of upcoming military-to-military talks; (2) Suspension of bilateral talks & collaborations on issues including repatriation of illegal immigrants, counternarcotics, & legal assistance in criminal matters; & (3) Suspension of joint efforts to tackle the climate crisis. In addition, it’s also reported that 🇨🇳 has decided to adopt sanctions on Pelosi & her immediate family members. This declaration came on 5/8 (Fri) 📢 as Beijing staged massive military drills surrounding the island of 🇹🇼 for a 2nd day (See photos). Beyond 🇹🇼, 5 of the missiles fired by 🇨🇳 landed in Japan’s Exclusive Economic Zone off Hateruma, an island far south of Japan’s main islands. This was viewed as a serious threat to Japan’s national security & the safety of its people. Immediate Impact Due to Pelosi’s Visit: (1) The military drills this week have forced a number of vessels ⛴🚢🛳 to reroute their journeys, causing disruptions to the regional & global economies. (2) Korean Air & Singapore Airlines had to cancel flights to & from Taipei on 5/8 because of the exercises, with the Korean carrier also cancelling its Saturday flights & delaying Sunday flights ❌✈️❌ (3) The military talks were intended for the coordination of air & sea operations to prevent unintentional flare-ups e.g. by warships operating close to each other at sea & analysts are concerned that halting these talks could escalate matters. Impact on Stocks & Our Portfolio📉📈: (1) The China, HK, & SG markets shrugged off the negativity after Pelosi left 🇹🇼 & closed in green while the Nasdaq & S&P 500 closed in red on 5/8. This was meant to be a good sign for investors (read Part 2 of my post). However, with this new tension, it is unsure how the markets will react on 8/8 (Mon) & the week ahead. (2) Despite being the world’s biggest carbon polluter, 🇨🇳 is also the largest producer of most of the world’s critical minerals for the green revolution. Will EV & clean energy companies in the 🇺🇸 be affected❓We’ll have to wait & see. (3) The HK & AUS markets may benefit from this stand-off if investors are not too spooked & worried about the outbreak of another war. (4) These new uncertainties brought about by the worsening 🇺🇸-🇨🇳 relations may create new supply issues & prevent US markets from continuing the bull rallies it was enjoying. Especially vulnerable may be the 🇨🇳 listed stocks on the 🇺🇸 stock exchange as investors may lose confidence leading to a minor sell-off. 🤔💭 My Thoughts: I don’t think 🇺🇸 will delist Chinese companies as a form of retaliation as provoking 🇨🇳 is not to it’s benefits as can be seen from above. However, 🇨🇳 may not release the needed information to 🇺🇸 for auditing which could end up contributing to the delisting of the Chinese companies. It would not hurt 🇨🇳 to have its companies delisted from the 🇺🇸 stock exchange as they can apply to be listed on the HK stock exchange which may be more in-line with China’s desired one-China principle. As such, I would not view Tencent’s $Tencent Holding Ltd.(TCEHY)$& Alibaba’s $Alibaba(BABA)$recent bottom a buy opportunity in view of the destabilised 🇺🇸-🇨🇳 relationship. However, if I were to buy these stocks or Chinese companies, I would buy them via the HK stock exchange $TENCENT(00700)$$Alibaba(09988)$ For additional sharing on this topic from me, click on the Snoopy icon to access parts 1 & 2 below🤓 Please help to like my posts, many thanks🤗 If you enjoy reading my posts, you can follow me & be updated whenever I post😉 ⭐️ Why did Stocks Drop:How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈 (Part 1) ⭐️ What to Watch For:How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈(Part 2) As usual-🤔💭 Consider POV & Actions of investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰 Source websites: Politico, the guardian, the washington post, & elements. @TigerStars@CaptainTiger@MillionaireTiger@Tiger_chat