Why China Is Still Losing The Trade War

Victor Dergunov
Investing Group Leader
(8min)

Summary

  • U.S.-China trade tensions are escalating, especially over rare earth minerals, increasing volatility and risk of a near-term market pullback.
  • China is far more dependent on the U.S. consumer market than commonly believed, making it vulnerable in prolonged trade disputes.
  • MP Materials stands out as a strategic investment opportunity as the U.S. seeks to build its own rare earths industry.
  • Despite short-term turbulence, I remain constructive on equities and maintain a 6,500 SPX target for year-end 2025.
  • This idea was discussed in more depth with members of my private investing community, The Financial Prophet. Learn More »
USA China Tariff Conflict

In early May, we discussed why China might be "losing" the trade war and why it was so imperative for the Chinese Communist Party "CCP" government to make a constructive and sustainable, long-term trade deal with the U.S.

So, just when

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This article was written by

Victor Dergunov
51.9K Followers

Hi, I’m Victor Dergunov, MBA, and I’ve been an active investor for over 20 years. My passion for investing started early, and I’ve spent two decades honing strategies that consistently deliver results. Whether it's tech giants like Apple and Tesla or opportunities in commodities and crypto, I provide diversified insights to help you succeed. Join me, and let’s take your investing to the next level.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long a diversified portfolio with hedges.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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