A renewed tariff war is stirring tension between the world’s two largest economies, and investors are being urged to act fast. As the US under President Donald Trump doubles down on its economic pushback against China, financial strategist Akshat Shrivastava is warning of deeper disruptions and calling for immediate diversification. The escalating friction is not just about trade — it’s a sign of a seismic shift in global power, one that puts China’s relentless manufacturing evolution and tech ambitions in direct competition with America’s reindustrialization game plan.
Akshat Shrivastava, founder of Wisdom Hatch, cautioned investors to diversify their holdings and tread carefully as tensions rise amid a fresh round of tariffs announced by US President Donald Trump.
In a post on X (formerly Twitter), Shrivastava wrote, “China is the obvious successor to the US. If you study China's model it is very simple: export great stuff at cheap price. Applies to manufacturing, robotics and now fairly sophisticated things like Semiconductors. How did they get here? well, by manufacturing more. The more they practiced, the better they got. The better they got, the less the US manufactured. With less manufacturing, they became less competitive. This made the entire world dependent on China, including the US.”
China is the obvious successor to the US. If you study China's model it is very simple: export great stuff at cheap price.
Applies to manufacturing, robotics and now fairly sophisticated things like Semiconductors.
How did they get here? well, by manufacturing more. The more…
He continued, “Up until now: China and US were competing on different grounds. US was happy buying low-end cheap stuff from China. As long as it left 'high-end' stuff for the US. But, last 10 years: things have changed. China got stuck into a middle-income trap. Witnessed a Real Estate crisis. And, realized that to truly compete against the US, it needs to compete on Tech. And, interestingly it has the muscle, know-how and clout to do it.”
Shrivastava added, “So what's US's game-plan to counter China? well to build its own capabilities before its too late. And, go all in on: both high- and low-end manufacturing (using Robotics). What Trump is doing right now looks like madness. And, it probably is. But, there is a plan that Trump has put into motion. No one can guess the results. But, at least he has the guts to make hard calls.”
“What should you do as an investor? Diversify like your life depends on it. Diversify career, real estate, stocks whatever you can,” he advised.
The post sparked lively discussion online, with users weighing in on the broader lessons from China’s rise.
“I think the key difference is they invested massively in primary & secondary education while we focused on building handful of elite higher education institutions. A large based of well educated population capable of critical thinking is highest asset for any country,” one user observed.
Another wrote, “Until now the biggest strength of India was its manpower. But with robots replacing unskilled manpower we have already lost all grounds.”
“World economy is at crisis, uncertain and unstable at this time. Even for seasoned and experienced investors are banging their heads trying to understand the markets. Some markets reached stage of 2020. Now why should someone diversify or even invest...” read one comment.
“China is a Mammoth Economy of $18 Trillion. They have achieved this by their hard work and Strong dedicated Leadership. They have Spine to fight with anyone," said another.