Bessent Is Right To Call For Rebalance As EU Trade Deficits With China Surge

APAC Research 1.4K Followers Follow Summary China’s export overcapacity and weak domestic demand are fueling global trade imbalances, prompting G20 calls for rebalancing and EU threats of action. Rising trade deficits, especially in the EU, risk suppressing domestic industries and wages, potentially leading to import substitution policies and increased market turbulence. Should the EU enforce stricter trade measures, companies like Siemens (SIEGY) could benefit from renewed industrial capacity, while Chinese firms may face heightened volatility. Investors should monitor the October EU deadline for trade negotiations, as failure to reach a deal could trigger significant market disruptions and broader economic consequences. Getty Images Thesis Scott Bessent is urging the G20 to rebalance trade with China, and given the flood of Chinese exports washing over markets worldwide, he strikes me as being correct. However, years of tensions with the Trump Administration, including threats of invasion, will make cooperation a hard This article was written by APAC Research 1.4K Followers Follow Markets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful investment insights. As society and technologies evolve, companies and other stakeholders will seize advantages. Figuring out which companies will take the best advantage of any given opportunities is not easy. I am especially interested in macrotrends, futurism, and increasingly, emerging technologies. However, as far as investing is concerned, it’s crucial to pay attention to the fundamentals, quality of leadership, product pipeline, and all the other details. In recent years, I have focused on marketing and business strategy, primarily for medium-sized companies and startups. I have worked in international development, including overseas for a foreign Prime Minister’s office, as well as non-profit work in the United States. Among other tasks, I evaluated startups and emerging industries/technologies. I have also moonlighted as a technology and economic news journalist. Now I’m looking to tie everything together. While my personal interests will always keep megatrends and technological developments in mind, I do believe fundamentals and technicals are vital to uncovering opportunities. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. 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.