We are all from somewhere and it is very helpful to us if the other jurisdictions where we would normally travel have good relations. The somewhere we are from has it own wonderful things, otherwise why live there as well as some negative aspects. Sometimes the other jurisdiction says the negative aspects flow into their jurisdiction and the easiest way to stop it is ban it. What happens at the local level also happens at the national and international level.

In an article by Fatima Hussein and Ken Moritsugu of the Associated Press, for the past few years the US and China relations have not been the normal good relations. For decades, the US moved manufacturing to China and it was very hard for any manufacturer to keep manufacturing in the US, for the investors asked why have you not moved operations to China? As the manufacturing was the first step, the services and other expertise developed and soon politicians began to ask why is the manufacturing in China? it should be in the US, although there were a number of bills passed which encouraged companies to move operations. China is presently going through a restructuring because manufacturing companies have left China as well as the property market values have decreased. Government spending on infrastructure has slowed because much of it has been built, it still needs to be maintained but the building phase is slowing.

US Treasury Secretary Janet Yellen met with Chinese Premier LI Qiang and sent a message of mutual co-operation. The US is the world’s largest economy, China is second and both have fought over a variety of issues. However, when the US put up restrictions, China sought alternatives including more trade with Russia. The US and Russia are at odds over the war in the Ukraine, so it is better for the US to have better relations with China.

Linking to dividend paying stocks, many of these companies will have operations outside of the US and it is good to know although countries will have some differences, they are generally more working together than against each other. In the world of geo politics, relationships ebb and flow for various reasons, as long as your investments are with companies the US has good relations with, there is less need to be seeking alternatives.

There are more questions than answers, till the next time – to raising questions.