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The global market outlook on China chip restrictions ========== Chip stocks are beginning to fall Wednesday as a report from Bloomberg outlines the Biden administration's plans for stricter trade regulations on chip exports to China. Former President Donald Trump made comments in an interview with Bloomberg suggesting Taiwan should pay for US security. Principal Asset Management chief global strategist Seema Shah believes that the US economy will benefit the most from global economic tightening, while the rest of the world will struggle. Shah also highlights India and Japan as countries that are outside of the spotlight and can do well in this trade tariff environment. The chip sector is under pressure due to the potential crackdown on chip makers who ship to China. Shah advises investors to consider diversification and look for other parts of the market that are less expensively valued. The small-cap sector has seen a rotation in recent trading sessions, driven by factors such as valuation, geopolitical tensions, and rate cuts. Shah believes it is still early to determine if this rotation will be sustained. She recommends having exposure to large-cap companies and considering international markets outside of the US. In terms of global economic growth, Shah points out that the US would benefit the most from increased tariffs, while India and Japan are less exposed. She also mentions that a weaker dollar would be good news for emerging markets. Overall, Shah advises investors to focus on high-quality, high-liquidity companies and to consider diversifying their portfolios internationally. https://finance.yahoo.com/video/global-market-outlook-china-chip-143532161.html