Alice Han

Pharma got hit the hardest, with Hanzhou Pharmaceutical Company declining 4% and Wuxi Biologics 4.8%.

All right, let's get right into it.

As the US-China relationship grows more strained, Beijing is aggressively courting America's allies.

Canada is breaking with Washington to cut tariffs on Chinese EVs from 100% in exchange for access to Chinese markets.

European regulators are testing China's homegrown C919 jet, and Beijing is dangling trade and diplomatic incentives across the European Union.

The big question, is this smart diversification or a strategic realignment that weakens US leverage?

James, a lot has been happening.

Even in the last week, we've seen Carney's trip to Beijing.

That's a pretty big deal.

He got really high-level, long meetings.

We also saw more recent moves of softening from the EU on China's trade, especially EVs.

And then we've also got Greenland that's impacting EU-US relations.

How do you think about China's economic moves in the midst of all of these dynamics?

Well, I think we first need to distinguish the EU dimension from the Canadian dimension.

I'll start with Canada.

It was interesting to me that less than a year ago, Carney campaigned on this concept partially that China was, quote-unquote, the biggest threat to Canada's security.

In a way, he had to politically make that point in order to, I think, win the election, if you recall.

And he was definitely a latecomer and a dark horse in terms of the Canadian election last year.

But since then, I think this is very much in lockstep with what I saw in Australia a couple of years back under Albanese when he joined as Prime Minister of Australia, bringing in the Labour government to Australian politics, is the fact that economic rationale wins at the end of the day.

Even although China is seen as a national security threat, there's a lot of money that's on the table.