Opportunities on the Horizon: Investing Through a Slowing Economy

Thematic updates | WEALTH OUTLOOK 2023 | MID-YEAR EDITION | 44 5.1 Putting national security interests ahead of economic cooperation: The evolution of G2 deglobalization and its implications LIGANG LIU Head of Asia Pacific Investment Economic Analysis KEN PENG Head of Asia Pacific Investment Strategy KERRYWHITE Head of North America, Citi Investment Management As economic competition between China and the US intensifies, technology has become the primary focus. Separating the development, use and distribution of technology by the world’s two largest economies will create new risks and potential opportunities for investors. ƒ The US and other western nations are prioritizing national security over economic cooperation with China ƒ US and Japanese investments in China have declined and many US businesses are looking to diversify operations, creating potential opportunites for reshoring or nearshoring, especially in robotics and artificial intelligence (AI) ƒ US neighbors such as Mexico stand to benefit from nearshoring