America and China at the APEC meeting
Many new developments in Sino-US relations emerged at the 22nd annual Asia-Pacific Economic Cooperation (or APEC) meeting that took place November 10-12, 2014, in Beijing, China. The two countries made decisions on various fronts, including climate change, visas, trade, and security.
“Both President Obama and I believe that when China and the U.S. work together we can become an anchor of world stability and a propeller of world peace,” said Chinese President Xi Jinping.
Progressive decisions and agreements between China and the United States positively impact exchange-traded funds that invest in these regions. The iShares China Large-Cap ETF (FXI) and the iShares MSCI Hong Kong Index Fund (EWH) invest in Chinese equities, while the SPDR S&P 500 ETF Trust (SPY), the iShares S&P 500 ETF (IVV), and the PowerShares QQQ Trust, Series 1 (QQQ) invest in US markets.
This year’s APEC meeting was peppered with welcome breakthroughs. China and the United States made a number of commitments that could bode well for Sino-US relations:
• Reduce or eliminate tariffs on information technology products
• Extend the term of visas
• Develop rules of the road for maritime and air encounters in the western Pacific
• Take action to address climate change by reducing carbon emissions
The next part of this series details these decisions and how they could impact growth in these two countries.