Ch Chinese manufacturers Loading... : Investor Sentiment and Bull/Bear Views

Chinese manufacturing remains the most efficient with deep, cheap supply chains, tariffs are now similar to other countries reducing the incentive to move, robotics structurally helps, valuations are cheap, and Chinese manufacturers are successfully expanding into Europe while continuing to deliver earnings growth.

John argues China excels at efficient supply chains and manufacturing learning curves but lacks iconic brands, which take decades to build. Therefore Chinese companies will keep acquiring storied Western brands like MG, Volvo, Lotus, and Sony's TV business to own the full stack, and this trend should continue.

Dalio expects China's competitive play to be very inexpensive chips embedded into manufactured goods plus robotics, built on a manufacturing base that already produces 33% of the world's manufactured goods, more than the US, Germany and Japan combined. He says the Chinese are somewhat behind in chips but ahead in applications, and expects a solar-panel or electric-vehicle style outcome where they take share at prices that ignore profitability. He frames it as a competitive regime to monitor rather than a clean directional trade, since profit not mattering cuts both ways for the producers themselves.