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In his first days in office, President Donald J. Trump has made it clear that his tough talk on China was more than just campaign rhetoric.
He continues to criticize the world's second-largest economy for what he says are unfair trade practices. Not only that, but he's also suggested slapping up to 45% tariffs on Chinese imports.
Along the way, he has lambasted U.S. tech firms that outsource production to China and then sell those goods here at home.
And then there's the South China Sea. During his confirmation hearing, Secretary of State Rex Tillerson said China should be blocked from the artificial islands it's built in this crucial shipping route.
With all this saber-rattling, now would seem to be the worst possible time to invest in anything related to China.
I don't know about you, but that kind of thinking – that kind of pessimism – just makes me dig deeper… to do more research. Because I know there's always a place to make money in any market.
You just have to find it.
And my excavations have uncovered a sizzling Chinese tech sector that lies well beyond the reach of the leader of the free world.
Today we're going to investigate a unique vehicle that allows us to tap into firms that are growing as much as 40% a year.
And that will boost your initial investment by similar amounts.
Let's dig in…
The World's Largest – and Pulling Away…
Let's get one thing cleared up right off the bat. Despite the president's bellicose language, at this point the odds he will start a trade war with China seem remote at best.
Fact is, China is our second-largest trading partner after Canada. Trump is nothing if not a businessman, and a trade war is just plain bad for U.S. firms across the board.
And then there's the question of our debt. China holds more than $1.25 trillion in U.S. Treasuries, making it one of our top creditors.
Besides, even if the president were to hit China with tariffs on imports to the United States, there's one burgeoning field where Trump can have exactly zero impact.
It's one of the hottest trends in a nation with 1.3 billion people. It covers everything from smartphones and mobile games to advertising and buying and selling cars, not to mention email, web search, and online news.
I'm talking about China's red-hot e-commerce sector.
China's e-commerce sector surpassed our own back in 2013 to become the world's largest. It now accounts for around $750 billion in yearly sales, according to McKinsey & Co. That's nearly twice as large as the U.S. e-commerce market.
Fully one-seventh of all Chinese retail sales now take place online – and that figure is set to move far higher.
That's because e-commerce in China is now fanning out to all corners of the economy: Consumers in second-tier cities are just now embracing this frictionless way of shopping. Plus, just as we'…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.