The "World's Best Friend": Here's where the U.S. and China differ in their social relations…

Wednesday: The Independent Investor From the desk of Miles Everson: Welcome to today’s edition of “The Independent Investor!” Every Wednesday, I talk about various tips and topics about investing with hopes to help you boost your investment portfolio. My goal in these articles is to help you invest wisely and achieve financial stability in the long run. Today, let’s focus on one of the most controversial topics in the world of finance. Are you ready? Keep reading below to know why the U.S. remains the dominant economic power despite talks of other “superpowers” in the world. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

ANNOUNCEMENT Did you know that 11% of all American workers—a staggering 18.1 million—are digital nomads? For those of you might not know, digital nomads choose to combine working remotely and traveling for various reasons and lengths of time. If you want to know how this once-fringe lifestyle has surged into the mainstream, please read MBO Partner’s latest report on the topic. This is an essential read for both professionals and corporate leaders as it sheds light on the growth, demographics, skills, satisfaction levels, and policies surrounding digital nomads. Besides, now that the world of work has truly shifted, there’s no going back… and for us to understand these changes, we need to take a closer look at the rise and popularity of the digital nomad lifestyle. We hope you’ll find our latest report helpful and insightful. Happy reading! The "World's Best Friend": Here's where the U.S. and China differ in their social relations… Have you watched the latest “Barbie” movie directed by Greta Gerwig? For those of you who have, you probably know by now that the film tackled the patriarchy’s adverse effects on womanhood and the consequential disadvantages and explicit sexualization many women face in their lives. … but to balance things out, the film also touched on ways in which men are harmed by toxic masculinity. As a result, the film became the talk of the entertainment industry throughout the summer of 2023! Did you know that aside from these gender-related issues and the “pink phenomenon,” the “Barbie” movie also became the talk of the town because of a geopolitical aspect in one of its scenes? In fact, this led to the movie getting banned in Vietnam. Here’s why… In one of the scenes of the movie, Barbie—played by Australian actress Margot Robbie—points to a cartoonish world map that includes a line of dashes stemming out of Asia. Vietnam was furious about it and claimed it was a reference to the infamous “nine-dash line” in the real world, which China drew on its most recent official standard map. While there’s a lot of debate about the exact meaning of the dashes, many believe these lines stake China’s claim to islands and waters all around the South China Sea. Clearly, the controversy around Barbie reflects deep-seated geopolitical tensions simmering in the Asia-Pacific region and represents the feelings of most of China’s neighbors. … and so today, we’ll take a closer look at what China’s aggression does to its neighboring countries and the rest of the world. We’ll also look at its implications for the U.S. and Corporate America. The “World’s Best Friend” According to Professor Joel Litman in one of his coaching comments delivered to the workforce at Valens Research, while China’s neighbors are looking elsewhere for alliances, the U.S. is inviting them to its lunch table. This even hit a high note in September 2023, when the U.S. and Vietnam declared a Comprehensive Strategic Partnership. For those of you who may not see the significance of this partnership, this isn’t just another diplomatic handshake—it’s a BIG deal! Just imagine this: As being traditionally closer (geographically) to China, it would be natural for Vietnam to form an alliance with this so-called “rising superpower.” So why would this Southeast Asian country deliberately take the time and effort to look to the other side of the globe and strike a deal with the U.S.? That in itself tells of the tension in the region… The U.S.-Vietnam alliance is a classic move in America’s playbook: Friendshoring. This involves shifting business and trade to countries that share similar values and political views. According to Professor Litman, friendshoring is a smart way to spread out America’s economic risks while tightening bonds with allies. By moving factories to friendly countries like Vietnam and Mexico, the “global superpower” reduces its supply chain’s reliance on China. Another example of friendshoring is Taiwan Semiconductor Manufacturing’s (TSM) USD 40 billion chip plant, which is being set up on American soil. Professor Litman says this is a bold move from a company in China’s neighborhood… and it goes to show that the U.S. charm offensive is working. What’s more? This investment is a BIG thumbs-up for the U.S. tech industry as well. TSM’s friendshoring will boost America’s position as a tech leader while dialing down its dependence on overseas production. Making Friends and Moving Factories Countries worried about China’s expanding influence are now looking to the U.S. for stability and partnership. This shift is reshaping the global economic landscape. For Professor Litman, such an approach is twofold: Economy-wise, the U.S. is dangling the carrot of its massive market and tech leadership… and countries are jumping at the chance to do business with a global powerhouse. Diplomacy-wise, the U.S. is all about building trust and opening dialogues with other countries of the world. While China continues to step on its neighbors’ toes, the U.S. is developing relationships with those same countries. In fact, in 2024, the U.S. government is expected to spend a record USD 1.2 billion on economic, development, and security assistance for nations in Southeast Asia. — China’s continued aggression toward other countries will only hurt its own potential. Meanwhile, the U.S. is making moves to assure its economic dominance for decades to come. The latter believes its growing network of allies will help secure its supply chains and open up new markets. For investors and market watchers like you, this is a green light! This explains why despite short-term recessions and sometimes over-exuberant valuations, Corporate America remains the best place for your money in the long term. Hope you’ve found this week’s insights interesting and helpful.     EXCITING NEWS AHEAD The world of work has shifted, and there’s no going back. The barriers to entry have never been lower for talented professionals to work independently, and today’s massive external workforce is hardly a pandemic-produced fad. Business owners can only survive in the new work landscape by partnering with this deep talent pool. With decades of experience in both small-business entrepreneurship and executive management at PwC, I truly believe that the future of work is independent. With that, I’m happy to share with you that my book, co-authored with Walter Scott Lamb, is now available for pre-order on Amazon! Free Birds Revolution: The Future of Work & The Independent Mind This is an essential read for both independent professionals and corporate executives. Here, we provide educational and practical guides to unpack the ever-growing workforce and offer you crucial ways to become a client of choice. Click on the link above to pre-order your copy. Let this book help you future-proof your career and organization in the new world of work.     During Q3 2023, Amazon, Microsoft, and Alphabet, spent a combined USD 32 billion to build their respective cloud computing infrastructures. Learn more about why you should look beyond big tech’s latest investments in next week’s article!