# Stocks Affected By Hot US Inflation Data, Trump Heads to China

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 13 May 2026, 21 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/dab42478-8bff-40cd-97d1-b4490021c42e/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

It should not be surprising that war in Iran is producing higher inflation in the US. There was higher gasoline in grocery prices sending headline CPI up last month at an annual rate of 3.8%, and that news in turn sent US treasury yields higher right across the curve. This fueled speculation that the Federal Reserve will raise interest rates next year, and bonds fell, with the 30-year yield rising to 5.03%. We heard from David Savage, Bloomberg's MLIV Strategist. Plus - President Donald Trump is expecting economic deals and a "wild" welcome this week in China. He'll arrive facing an emboldened Xi Jinping, just as his own hand is constrained by the conflict in Iran. When the US president touches down in Beijing on Wednesday evening for a 36-hour summit, it'll mark his first overseas trip since waging war in the Middle East. Over talks at the Great Hall of the People and a state dinner, followed by morning tea, the leaders will discuss trade, tariffs and the self-ruled island of Taiwan. Another agenda item, of course, is Iran. For a preview, we heard from Henry Huiyao Wang, Center for China and Globalization Founder and President speaking to Bloomberg's Haidi Stroud-Watts. See omnystudio.com/listener for privacy information.

## Transcript

[0:00] Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
[0:10] Speaker 2: Welcome to the Daybreak Asian podcast. I'm Doug Krisner. It
[0:13] Speaker 2: should not be surprising that boring Iran is producing higher inflation. Stateside,
[0:18] Speaker 2: we had higher gasoline and grocery prices, sending headline CPI
[0:22] Speaker 2: up last month at an annual rate of three point
[0:25] Speaker 2: eight percent, and that news in turn sent US treasure
[0:28] Speaker 2: yields higher right across the curve. Meantime, the US equity
[0:32] Speaker 2: market closed mixed. We did have weakness among the chip makers,
[0:36] Speaker 2: sending both the S and P five hundred and the
[0:38] Speaker 2: Nasdaq composite down from record highs. For a closer look
[0:41] Speaker 2: at the price action, I'm joined by Bloomberg strategist David Savage.
[0:45] Speaker 2: David joins from our studios in Hong Kong. Thank you
[0:48] Speaker 2: for being here. You and I were talking a moment ago,
[0:50] Speaker 2: and you were saying to me that the market has
[0:53] Speaker 2: been kind of discounting this inflationary pressure for a while,
[0:57] Speaker 2: so perhaps and I don't want to stick word in
[1:00] Speaker 2: your mouth here, we shouldn't read too much into the
[1:02] Speaker 2: CPI print. Is that the way you see it?
[1:06] Speaker 3: Yeah? And thanks for having me. I think, I think,
[1:09] Speaker 3: really there's been a disconnect between where the equity market
[1:12] Speaker 3: is trading inflation and where bond markets are. Right, and clearly,
[1:17] Speaker 3: bond markets have been signaling that inflation is accelerating higher.
[1:20] Speaker 3: We've seen yields trending higher, and as you said, you know,
[1:23] Speaker 3: yields moved higher on the print as well. I think,
[1:25] Speaker 3: really what what yields are signaling is that the trend
[1:28] Speaker 3: for inflation is still higher. So you know, as we
[1:32] Speaker 3: move clos through a headline CPI with a FOE handle,
[1:35] Speaker 3: that's really what the bond market is is going to
[1:37] Speaker 3: be concerned about, you know, particularly if we have you know,
[1:41] Speaker 3: US policy makers, the FED continuing to discount or look
[1:47] Speaker 3: through this inflationary impulse we saw best and I think
[1:50] Speaker 3: yesterday called inflation transient. So I think that that's the
[1:55] Speaker 3: concern on the bond market. But the equity market's really
[1:57] Speaker 3: been trading on this AI theme and that's really to
[2:01] Speaker 3: this point been separate, uh from you know, the conflict
[2:04] Speaker 3: and and and the inflationary impulse.
[2:06] Speaker 2: So there used to be this inverse correlation between what
[2:10] Speaker 2: many of the big tech stocks did and what treasure
[2:13] Speaker 2: yields did. Is that starting to break down a bit
[2:15] Speaker 2: in your view, or are we still seeing that relationship
[2:18] Speaker 2: kind of pretty much intact.
[2:21] Speaker 3: I think that's a great point because to this point
[2:24] Speaker 3: it hasn't been at all a break on the tech rally,
[2:28] Speaker 3: particularly on the hardware names that we've seen. You think
[2:32] Speaker 3: at some point, particularly you know, as you noted as
[2:35] Speaker 3: we were talking earlier, that you know, a lot of
[2:38] Speaker 3: this capex spending is increasingly being funded through debt at
[2:41] Speaker 3: some point, you know, higher yields will feed through, you know,
[2:45] Speaker 3: to to you know, weaken that that capex impulse. It
[2:48] Speaker 3: has been a huge driver, but to this point it
[2:51] Speaker 3: hasn't been. And I think part of the reason, you know,
[2:55] Speaker 3: is there's reasons to think that yes, inflation is accelerating,
[2:59] Speaker 3: but also so growth, likely driven again by the capex
[3:04] Speaker 3: impulse we've seen, is also more resilient than we perhaps
[3:07] Speaker 3: would have thought a few weeks ago in the worst
[3:09] Speaker 3: of sort of the conflict going on. And you can
[3:12] Speaker 3: see that in copper prices, industrial prices really picking up.
[3:16] Speaker 3: So again that would be supportive of equities as well.
[3:19] Speaker 2: So you talked a moment ago or you mentioned the
[3:21] Speaker 2: fact that we're going to be looking for some sort
[3:23] Speaker 2: of response when it comes to FED policymakers. Perhaps on
[3:27] Speaker 2: Wednesday in the US, we're going to get the confirmation
[3:30] Speaker 2: vote on Kevin Warsh as FED chairman. We know that
[3:34] Speaker 2: there is perhaps given the fact that Trump selected him
[3:38] Speaker 2: for maybe a little bit of bias toward easing, if
[3:41] Speaker 2: I can say that much. Right now, it seems like
[3:44] Speaker 2: all bets are off in terms of rate cuts for
[3:46] Speaker 2: the remainder of the year. But can we agree that
[3:48] Speaker 2: the market is beginning to price in the possibility that
[3:52] Speaker 2: the next move is a rate hike? Is the market
[3:55] Speaker 2: becoming a little too aggressive in that in your view?
[4:00] Speaker 3: I think you're absolutely right that that's where the trend
[4:02] Speaker 3: has gone. We've gone from pricing in you know, two cuts,
[4:06] Speaker 3: to pricing out those cuts and now starting to price
[4:09] Speaker 3: in hikes. I think, you know, again, I think the
[4:14] Speaker 3: market is still anchored to the idea that a Warsh
[4:18] Speaker 3: FED will still be relatively more dubbish than we might
[4:21] Speaker 3: have expected given the data we're seeing. I think interestingly,
[4:26] Speaker 3: you know, we saw inflation inflecting higher before the conflict,
[4:30] Speaker 3: part of that being that commodity prices were we're already
[4:32] Speaker 3: moving higher. Uh, and now the conflict, does you know,
[4:37] Speaker 3: provide some level of uncertainty that some central bankers, including
[4:40] Speaker 3: the FED, are are stating that, you know, we may
[4:43] Speaker 3: need more time to figure out you know, what what
[4:47] Speaker 3: is you know, what is transient in terms of the
[4:50] Speaker 3: inflation and what is more structural. So you know, again
[4:54] Speaker 3: that almost functions as another feature to be actually more
[4:57] Speaker 3: dubbish than they might have otherwise been.
[5:00] Speaker 2: So I'd like to get your take, David, on what
[5:02] Speaker 2: markets in the APEC now are doing as we approach
[5:05] Speaker 2: this Trump she summit and whether or not we're looking
[5:09] Speaker 2: at perhaps deal flow coming out of this meeting that
[5:12] Speaker 2: could begin to show up in some of the price action,
[5:15] Speaker 2: particularly in certain equities, let's say within the high tech space.
[5:20] Speaker 2: Is that a possibility?
[5:22] Speaker 3: Yeah, I mean that's a really interesting space because we've
[5:25] Speaker 3: seen you know, in the in some of the US,
[5:29] Speaker 3: you know, chip makers, some you know, really pretty an
[5:33] Speaker 3: incredible rally in the last couple of weeks you're leading
[5:36] Speaker 3: up to this summit. In Asia, you know, the big
[5:39] Speaker 3: story has really been on the hardware side, right, So
[5:41] Speaker 3: if we look in China, you know, some of the
[5:43] Speaker 3: optical trades and some of the semiconductor you know names there,
[5:49] Speaker 3: the battery makers. But then across North Asia, it's really
[5:53] Speaker 3: been a story of the again, the hardware players. They're
[5:56] Speaker 3: driving the rally that in many ways is outpaced what
[5:59] Speaker 3: we've seen in the US. I think we have seen,
[6:03] Speaker 3: you know, again just this week, a start of you know,
[6:07] Speaker 3: some cracks, you know, particularly if we look at the
[6:09] Speaker 3: big names Samsung, s k Heinex, we've seen I saw
[6:12] Speaker 3: a pretty you know, sharp draw down yesterday. But again
[6:16] Speaker 3: these stocks are up, you know, the costp is up
[6:19] Speaker 3: over eighty percent year to date, and by some measures,
[6:23] Speaker 3: you know, these stocks are actually cheaper than they were
[6:26] Speaker 3: you know, a year ago because forward expectations in terms
[6:29] Speaker 3: of earnings have been ramped up so high. So if
[6:32] Speaker 3: we look across the region, that really is the story that. Yes,
[6:36] Speaker 3: you know, the rally looks in some ways quite you know,
[6:40] Speaker 3: frothy and very much reliant on a very small handful
[6:43] Speaker 3: of hardware winners, but the fundamentals remain really really strong.
[6:48] Speaker 3: It's just one anecdote. South Korea's semiconductor exports to the US.
[6:53] Speaker 3: Latest data we have is of March. It grew three
[6:56] Speaker 3: hundred and thirty nine percent, So you know, again the
[6:59] Speaker 3: fundamental are pretty extraordinary at this point.
[7:02] Speaker 2: It's kind of interesting that President Trump, and speaking with
[7:06] Speaker 2: reporters earlier in the day in the US, said that
[7:09] Speaker 2: he and President She would not be talking about Iran,
[7:12] Speaker 2: that there were many more issues to focus on in
[7:14] Speaker 2: terms of the trade relationship. I'm thinking of primarily if
[7:18] Speaker 2: there is not a resolution to this conflict, then we
[7:20] Speaker 2: see oil prices remain elevated for the foreseeable future. We've
[7:25] Speaker 2: already seen the negative impact that it's having, not only
[7:28] Speaker 2: on the growth story and certain jurisdictions in the APEC,
[7:31] Speaker 2: but clearly, as was the case with the CPI print
[7:34] Speaker 2: in the US, higher inflation across the Asia Pacific. How
[7:38] Speaker 2: much more time do we have to kind of deal
[7:41] Speaker 2: with stasis before there's a break if there's no relief
[7:45] Speaker 2: from higher oil do you think?
[7:49] Speaker 3: I think to this point, particularly post cease fire, the
[7:54] Speaker 3: equity market has again been completely focused on almost a
[7:58] Speaker 3: singular theme, and and you know, the incredible earnings that
[8:01] Speaker 3: we've seen associated with that, and then you know the
[8:04] Speaker 3: earnings expectations that have continued to ratchet up higher and
[8:08] Speaker 3: higher oil prices is essentially just become another factor in
[8:11] Speaker 3: that model. Now for equities that are not exposed to
[8:16] Speaker 3: the ai kepex cycle and and not benefiting from from
[8:20] Speaker 3: higher oil prices. They're you know, wearing that that impact
[8:25] Speaker 3: a lot more directly. But I think as long as
[8:28] Speaker 3: we see oil prices contained, uh, you know, at an
[8:31] Speaker 3: elevated level, but we're no longer pricing in really adverse
[8:35] Speaker 3: scenarios which we were in March, right in terms of
[8:37] Speaker 3: you really widespread infrastructure destruction. I think that's a space
[8:44] Speaker 3: where again the rally is going to need to see
[8:46] Speaker 3: a turn on this this within this theme of AI
[8:50] Speaker 3: to see the rally really reverse. Right, Do we see
[8:53] Speaker 3: you know, some signals that production is getting more difficult,
[8:58] Speaker 3: or you'll perhaps capex guidance comes down. I think you're
[9:02] Speaker 3: going to need a catalyst of that nature or you know,
[9:06] Speaker 3: something very extreme on the oil side, right, a real
[9:08] Speaker 3: re escalation of the conflict.
[9:10] Speaker 2: But maybe it's not a demand story per se, or
[9:13] Speaker 2: a weaker demand story. Maybe you have something like energy
[9:16] Speaker 2: prices becoming so expensive that it doesn't behoove some of
[9:21] Speaker 2: these companies to kind of continue with the buildout because
[9:26] Speaker 2: the return on investment wouldn't be as great when you're
[9:29] Speaker 2: dealing with enormous energy cost Could that be a part
[9:33] Speaker 2: of the story, which then kind of connects us into
[9:35] Speaker 2: the the energy trade a little bit.
[9:38] Speaker 3: I think that that makes a lot of sense to me.
[9:41] Speaker 3: It's just something we haven't yet seen in terms of
[9:45] Speaker 3: price action or seen you in terms of real, you know,
[9:49] Speaker 3: tangible guidance from some of the hyperscalers for instance. Really
[9:54] Speaker 3: it's been the opposite story remarkably that they're you know,
[9:58] Speaker 3: they're really more focused on the shortage of compute and
[10:01] Speaker 3: they're going to continue to expand CAPEX expending, cappex expenditure,
[10:06] Speaker 3: and that's really to the benefit here in Asia of
[10:09] Speaker 3: what we're seeing in terms of some of these hardware
[10:10] Speaker 3: players right that, you know. Again, so I think that
[10:15] Speaker 3: makes sense, and that could be the trigger later, but
[10:18] Speaker 3: I think the market's going to need see evidence of
[10:20] Speaker 3: that before we start to see a real reversal. But
[10:23] Speaker 3: in the meantime, the market's increasingly reliant on a number
[10:27] Speaker 3: of a very small handful of winners, which means it's
[10:30] Speaker 3: increasingly exposed to very idiosyncratic risks, which we saw yesterday
[10:33] Speaker 3: in Asia. You know, a single headline that seemed to
[10:35] Speaker 3: be misunderstood drove a pretty significant draw down.
[10:39] Speaker 2: So we talked about higher yields one of the reasons
[10:41] Speaker 2: that the dollar was stronger against the majors Today, do
[10:44] Speaker 2: we need to talk a little bit about what a
[10:47] Speaker 2: stronger dollar means for Asia and particularly if there's not
[10:51] Speaker 2: a reversal anytime soon.
[10:54] Speaker 3: I think so. But I think it's also emblematic of
[10:58] Speaker 3: the market we're seeing. Where we're seeing you know, we
[11:00] Speaker 3: talked about, you know, again the idea of a you know,
[11:03] Speaker 3: a K shaped recovery within the US. I think globally
[11:06] Speaker 3: we're seeing that as well. That countries like you know,
[11:10] Speaker 3: South Korea, or if you look elsewhere in Asia, you know, Taiwan.
[11:15] Speaker 3: You know, these economies that have the tailwind of ai
[11:20] Speaker 3: exposure or elsewhere in Asia, if they have a tailwind
[11:24] Speaker 3: as being an energy export, you know, their currencies, their
[11:28] Speaker 3: markets are more insulated than if you compare to other
[11:31] Speaker 3: developing areas in Asia, Indonesia, the Philippines, which are really
[11:36] Speaker 3: under sort of the double pressure of higher energy prices
[11:40] Speaker 3: really compounding domestic demand, and then you know, a higher
[11:44] Speaker 3: dollar which also compounds that inflation pressure. So you know,
[11:49] Speaker 3: I think that's absolutely a story worth watching, but it's
[11:52] Speaker 3: it's it's more nuanced because again it's it's impacted by
[11:55] Speaker 3: this this Ai story.
[11:57] Speaker 2: Understood, David, Thank you so very much. David Savage, Bloomberg
[12:00] Speaker 2: Strategists joining from Hong Kong here on the Daybreak Asia podcast.
[12:12] Speaker 2: Welcome back to the Daybreak Asia Podcast. I'm Doug Chrisner.
[12:16] Speaker 2: So President Trump is on his way to Beijing to
[12:18] Speaker 2: meet with Chinese President Chichin Ping and there are multiple
[12:22] Speaker 2: issues on the table, including trade tariffs, Taiwan, even war
[12:26] Speaker 2: in Iran. For a preview, we heard from Henry huia Wong.
[12:30] Speaker 2: Henry is founder and president of the Center for China
[12:33] Speaker 2: and Globalization. He spoke with Bloomberg's Heidi Stroud Watts.
[12:37] Speaker 1: What are your expectations. Do you have high expectations for
[12:40] Speaker 1: the summit?
[12:41] Speaker 4: I think the expectation are quite managed. Of course there
[12:45] Speaker 4: was high as well, but we have a few delays,
[12:47] Speaker 4: but finally it happened. So President Trump will arrived tonight.
[12:51] Speaker 4: But significantly, this is his second visit in China. Nine
[12:58] Speaker 4: years and almost over a decade we haven't seen US
[13:01] Speaker 4: presidential official visit, so this has got a lot of attention.
[13:05] Speaker 4: I saw the building, for example, this building said Beijing
[13:08] Speaker 4: welcomes you. So there's already the Beijing City in the
[13:11] Speaker 4: evening illuminated. So I think people are giving a lot
[13:15] Speaker 4: of high expectations because we are leaving a very turbulent war.
[13:20] Speaker 4: Now we have war going on, we have a lot
[13:22] Speaker 4: of uncertainty. So I think the two largest economy and
[13:26] Speaker 4: two strongest country leader meeting here in Beijing is really
[13:30] Speaker 4: significant and project a lot of assurance and their handshaking shaking,
[13:35] Speaker 4: and also there they are pictures will sure a lot
[13:39] Speaker 4: of Probabic people around the world that to to head
[13:43] Speaker 4: the meet and an expectation arising as well.
[13:47] Speaker 1: President Trauma slights between saying that he wants China to
[13:50] Speaker 1: help when it comes to Ron saying that we don't
[13:52] Speaker 1: need China's help. Do you think that's going to be
[13:55] Speaker 1: a key element of what gets agreed and what is
[13:57] Speaker 1: Beijing willing to do here?
[13:59] Speaker 4: No, I think that's very significant. I would think that
[14:02] Speaker 4: was probably big expectation from President Trump because you know,
[14:06] Speaker 4: we we can see the war is still going on,
[14:08] Speaker 4: the Hormone Street is still closed, and the US is
[14:13] Speaker 4: really getting into the mass of that kind of situation
[14:15] Speaker 4: and then really eager to get out. But China, you know,
[14:18] Speaker 4: actually the last two months, China from mister WANGI has
[14:21] Speaker 4: phoned over thirty counterparts in golf countries in Iran, all
[14:27] Speaker 4: the Urine Security Council members and European Union and Russia
[14:30] Speaker 4: or whatever. So that's a record number of four minutes
[14:33] Speaker 4: he phoned in two months, and that was we had
[14:36] Speaker 4: just Iranian four minutes that come to agent last week.
[14:39] Speaker 4: So I think the message is very clear from China,
[14:41] Speaker 4: you know, the war should not be continued and should
[14:44] Speaker 4: get engaged in the dialogue. And also Hormones Street should
[14:47] Speaker 4: be open. So I think that's really a great mass
[14:49] Speaker 4: in China can give, but giving. China is the largest
[14:51] Speaker 4: trading partner of golf countries at nineteen percent. Iranian petroleum
[14:56] Speaker 4: is both but China and China has a huge influence
[14:58] Speaker 4: in this respect. So I think by having President Trump
[15:01] Speaker 4: presence should come in together, any John statement or any
[15:05] Speaker 4: consensus they can have would have a very good impact
[15:08] Speaker 4: on this Iranian US conflict. But furthermore, I think both
[15:12] Speaker 4: Iranian and US doesn't want to continue. They want to
[15:15] Speaker 4: get out of this. They just need the ladder to
[15:17] Speaker 4: gracefully come down, and China provide exactly that that platform
[15:21] Speaker 4: for them to step down.
[15:22] Speaker 1: What will Beijing want in response, do you think anything
[15:26] Speaker 1: will change when it comes to Taiwan.
[15:28] Speaker 4: Well, I think that's probably one of the things China
[15:31] Speaker 4: is keeping that as a core interest, of the core
[15:34] Speaker 4: interest because as we can see, you know, the present
[15:37] Speaker 4: Trump wants a larger piece. He said his inaugural speech
[15:41] Speaker 4: last year, he wants to be the president of the peace,
[15:43] Speaker 4: so he's immediating Russian war Ukraine. He really wants to
[15:46] Speaker 4: get out of this war in Iran and a Middle East,
[15:50] Speaker 4: so they will need China really to come in to
[15:55] Speaker 4: support probably to get out of this this this war.
[15:59] Speaker 4: But for China absolutely, the cost straight piece is so
[16:03] Speaker 4: important for China too. You know, if you as all
[16:05] Speaker 4: the previous governments said, okay, they do not support Taiwan independence,
[16:09] Speaker 4: why not President Trump cannot say we're against Taiwan independence
[16:15] Speaker 4: or we support the peace of unification of China. So
[16:18] Speaker 4: Trump is seeking a larger piece of globally, and China
[16:21] Speaker 4: is really looking at the regional piece. So I'm sure
[16:23] Speaker 4: there will be some common language. If they all want peace,
[16:26] Speaker 4: they can help each other. So I would think this
[16:30] Speaker 4: this visit by Trump is really important that he has
[16:35] Speaker 4: actually haven't said anything about Taiwan in the past, so
[16:38] Speaker 4: I think he's more pragmatic, He's more focused than now
[16:41] Speaker 4: on a western hemisphere. So why not give some space,
[16:45] Speaker 4: you know, relax in this part of the world and
[16:47] Speaker 4: let China and Taiwan peaceful.
[16:50] Speaker 1: United pragmat doesn't prevail when it comes to trade and tariffs,
[16:53] Speaker 1: that almost seems to be, you know, a secondary priority.
[16:56] Speaker 1: But we know it's important for Beijing. Will they be
[16:59] Speaker 1: able to get access when it comes to Ai and
[17:01] Speaker 1: Chip those conversations, Well, I'm sure.
[17:03] Speaker 4: AI is a big topic. I think Ai, you know,
[17:06] Speaker 4: we are in charge to the territory. Now, AI being
[17:09] Speaker 4: China US two largest as superpower, they have to really
[17:12] Speaker 4: you know somewhat compare notes and get some governance, uh
[17:16] Speaker 4: mechaniums set up. Otherwise it's going to be run wild
[17:18] Speaker 4: and then we could be wiped out by AI, you know,
[17:20] Speaker 4: human beings. But I think on a trade side, you
[17:22] Speaker 4: know you're going to they're going to establish probably a
[17:25] Speaker 4: Board of Investment, board of trade, which is great. China
[17:28] Speaker 4: can buy more all the all the you know b
[17:31] Speaker 4: you know b for you know, buoying and and and
[17:35] Speaker 4: and also all the all the good stuff from us,
[17:39] Speaker 4: you know, and and then of course US uh can
[17:43] Speaker 4: also uh you know buy from China too. You know,
[17:46] Speaker 4: there's many things that that the Chinese so they will supply.
[17:48] Speaker 4: And so I think that that that regular mechanism set
[17:53] Speaker 4: up is so important. But also trade, you know, in
[17:56] Speaker 4: addition to the trade, that the investment. China is interested
[17:59] Speaker 4: to invest in US. A lot of company interests to invest.
[18:01] Speaker 4: And then if we say it was nonsensitive, there's really
[18:04] Speaker 4: what needed in the US. Helping the manufacturing, helping the
[18:07] Speaker 4: employment in the US.
[18:09] Speaker 3: Why not.
[18:10] Speaker 4: So I think President Trump is very pragmatic. He welcomed
[18:13] Speaker 4: Chinese investment, and I think that would be really helping
[18:16] Speaker 4: US and China relations. And that's what Japanese did in
[18:20] Speaker 4: the eighties and nineties one they had a tense relation
[18:22] Speaker 4: with US. So so I think there's trade issue would
[18:24] Speaker 4: be great. But in addition to that, I think there's
[18:26] Speaker 4: low handful there too. Like phantanol. There's ten percent added
[18:29] Speaker 4: by President from on the pantanol, but recently both China
[18:32] Speaker 4: and the US has punished to some pantanel you know,
[18:36] Speaker 4: illegal producers and things like that. So I think, you know,
[18:40] Speaker 4: time has come that we dropped this ten percent on
[18:43] Speaker 4: fantannel between the trade of China and US.
[18:46] Speaker 1: China is over the last few years really tried to
[18:49] Speaker 1: position itself as the alternative when it comes to what
[18:53] Speaker 1: it calls US hegemony and the sort of global liberal democracy.
[18:57] Speaker 1: Do you think Beijing and presidency have benefited from this war?
[19:03] Speaker 4: No. I think this kind of narrative is not really
[19:05] Speaker 4: helpful that because in the past there was to talk
[19:07] Speaker 4: about you know, like by the year talk about a
[19:09] Speaker 4: ptocracy versus democracy and things like that. But now we
[19:12] Speaker 4: found out it's different. Chinese is a hybrid. You know,
[19:15] Speaker 4: they had the meritocracy, they had the trilato structure of
[19:20] Speaker 4: the economy, private sector see multinational foreign companies. So it's really,
[19:26] Speaker 4: you know, a hybrid of a different governance models and
[19:30] Speaker 4: economic structure. So I think, you know, let's really look
[19:33] Speaker 4: at performance. So if a performance is really deliverable and
[19:37] Speaker 4: China become the largest green power country in the world,
[19:41] Speaker 4: lifted eight hundred people at the property, that should be
[19:44] Speaker 4: given a lot of credits. So I think, you know,
[19:47] Speaker 4: China does want to say hedge amount, you know, go
[19:50] Speaker 4: good dominance because we don't have any soldiers anywhere. US
[19:53] Speaker 4: have several hundred military based around world. China doesn't really
[19:56] Speaker 4: have one, and so I think the culture of China,
[20:00] Speaker 4: you have to grow the four or five crops a year,
[20:03] Speaker 4: you basically have to stay in this land. You can't
[20:04] Speaker 4: go anywhere. And Confusion said, if your parents alive, don't
[20:08] Speaker 4: travel far away. So I think that kind of culture
[20:11] Speaker 4: made hard walking Chinese. Really we're hot on this island, Yeah,
[20:15] Speaker 4: on this on this land land.
[20:16] Speaker 2: That is Henry Huiyao Wang, founder and President of the
[20:19] Speaker 2: Center for China and Globalization, speaking with Bloomberg's Heidi Stroud Watts,
[20:24] Speaker 2: bringing you their conversation here on the Daybreak Asia Podcast.
[20:29] Speaker 2: Thanks for listening to today's episode of the Bloomberg Daybreak
[20:32] Speaker 2: Asia Edition podcast. Each weekday, we look at the story
[20:36] Speaker 2: shaping markets, finance, and geopolitics in the Asia Pacific. You
[20:40] Speaker 2: can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
[20:44] Speaker 2: or anywhere else you listen. Join us again tomorrow for
[20:48] Speaker 2: insight on the market moves from Hong Kong to Singapore
[20:51] Speaker 2: and Australia. I'm Doug Prisner, and this is Bloomberg

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