Citi Global Wealth UNSToPPABLe TreNDS | | 58 Investments Opportunities for investment Of course, ongoing polarization between the amid higher G2 competition G2 powers creates risks for many companies and sectors. For example, business lost in one market is unlikely to be replaced instantly The US-China technology decoupling is at by activity elsewhere. Chipmakers unable to the intersection of the unstoppable trends of sell certain products to China are currently digitization and G2 polarization. We expect learning this the hard way. We believe that this to find potential investment opportunities favors a selective approach over broad-based on both sides of the competitive divide. Our passive exposure. approach therefore stresses globally diversified exposure, including to key US and Chinese A less globalized, more polarized world presents technology producers. challenges for investors. But weaker economic ties may also mean less correlated assets. Over Beyond semiconductors, we envisage an time, this may mean potential diversification ongoing drive to diversify and reinforce supply opportunities for portfolios. chains on both sides, with potential beneficiaries outside both China and the US. These include the trading partners of both G2 powers in Southeast Asia, as well as India and Mexico. Over the coming decade, we expect potential growth in emerging Asia to be led by India and then the likes of Indonesia, Malaysia and the Philippines. While the potential growth in China is set to slow further as its population ages faster, its economic size of over $18trn will still be an important market for others to rely upon.