Published on: August 8th, 2022 • Duration: 58 minutes
Speaker of the House Nancy Pelosi’s visit to Taiwan generated a lot of heat last week, drawing a lot of attention to the increasingly tense U.S.-China relationship. Still, it’s fair to ask: Are markets properly discounting the event and its geopolitical ramifications? David Woo is the founder and CEO of David Woo Unbound, where he engages in “fact-based debates about markets, politics, and economics.” In conversation with Real Vision’s Andreas Steno Larsen, he urges investors to pay much closer attention to what’s happening where the South China Sea meets the East China Sea as well as in Eastern Europe. “In the last few years,” Woo notes, “it is very clear that if you don't understand politics, I don't care how much economics you know, you are destined to lose money.” Woo and Larsen explore the U.S.-China relationship through the prism of Taiwan, framing Beijing’s options in the aftermath of Moscow’s attack on Kyiv. As its internal politics are critical to its international ambitions, Woo contextualizes China’s real estate crisis, explains the significance of an aging population, and previews Xi Jinping’s bid for an unprecedented third term as president. At issue are merely global supply chains, the reshoring of manufacturing capabilities, and the specter of heightened market volatility through 2022 and into 2023. Recorded on August 3, 2022.