what's going on with some of this mixed messaging um you know China welcoming foreign direct investment or at least seemingly welcoming foreign direct investment at the same time putting up restrictions on us businesses how should investors view this yeah first of all I mean this is the National Security view ascendant in Beijing right now uh that is driving everything in sectors where they think Reliance on American firm software Hardware anything you talk about is going to become a national se
curity threat they want American companies out extricate gone um where of course they need American Technology and information and access to the IP in order to ultimately eventually become lead players in those sectors themselves they're going to welcome foreign investment that is the Paradigm or the framework really uh that investors need to fully comprehend and and move forward on the basis of you know that's a really interesting Dynamic so your word extricating they want the US businesses out
but at the same time we just saw Tim Cook on that panel just there uh when Unice was talking and also he was in CH opening up a new Apple Store so how do you explain that um one of the big Industries in China that they seemingly were trying to protect was the mobile phone business Huawei in particular but still welcoming in Tim Cook still opening up new stores I mean explain just it seems like almost a bipolar view of us business well you know apple as far as its finished products its iPhones i
s concerned is of course having a very tough time in in China given the local competition and the fact that local companies have gotten tremendous amount of State subsidies and other support from Beijing but at the same time Apple is very important to China because it you know has factories in China and China of course is very important to Apple itself uh given that supply chain integration that we're talking about so that makes sense I think it goes back to the same concept that I I just descri
bed here where China has an an advantage whether it's in terms of jobs or access to technology uh retaining a critical position in the in the supply chain it certainly wants those firms there Apple's not the only one look at Pharmaceuticals they want more American pharmaceutical investment and presence in China rather than less big National Security risk from America of course okay um new report out that uh China's direct foreign or foreign direct investment I should say fell about 20% last year
down to 30 billion I'm going to show you some a number and show the audience as well Mexico on the other hand saw $ 36 billion in foreign direct investment pretty much Rising about 1% year-over-year but still as you can see a very strong number is it possibly just things have shifted um us companies especially want their supply chains that you just mentioned closer to home and the trend is going to just be lower no matter what China does when it comes to that foreign investment yeah look I thin
k uh you know China's been one of the biggest beneficiaries I think of this concept of near Shoring of friend Shoring that uh we're trying to promote out here in America because also what you're seeing by the way is a lot of Chinese companies uh partnering up with plans in Mexico and opening up plans in Mexico uh in order to continue supplying the American Market but away from China uh so that they can evade the tariffs and the trade sanctions and so forth um so that's a trend that may very well
continue but I think the Topline numbers uh probably hide the fact that ultimately again it is Chinese companies who are uh at least in part benefiting or you know from from the shift
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