Can You Keep a Secret?
China keeps pinching American trade secrets, according to a fervently convinced US Justice Department. US officials claim that 80% of economic espionage traces back to a Chinese smoking gun, something that completely changes the dynamic of which Western stocks deserve to be top!
For a company to perform well on the stock market, it needs an awesome competitive position. Precious secret recipes and tricks of the trade can go a long way in protecting that competitive position, acting as heavy-duty fortifications against rival businesses on the hunt.
However, that’s only for as long as they’re kept under wraps. Evidence is building that no-one can keep a secret from Chinese cyber boffins. Slowly but surely, market players are valuing trade secrets less — preferring more sturdy advantages like economies of scale, iconic brands, and network effects instead.
Western investors often duck Chinese stocks. Political winds in the country need to blow in your company’s favor, and only nationals are permitted to buy shares carrying voting power. President Xi will call the shots for life without any real opposition, but he is at-least tackling down on corruption in the country head-on.
The Chinese ‘win by any means’ mentality has worked wonders in the past, but in the opinion of US leaders, it’s worked wonders against them. President Trump’s trade war remains at a deadlock, a company’s trade secrets are under threat, and an investor’s trade calls are starting to adapt!
