Welcome to Thoughts on the Market.

I'm Michael Z.

This is Heather Public Policy Research and Municipal Strategy for Morgan Stanley.

Along with my colleagues bring you a variety of perspectives.

I'll be talking about the intersection between U.S. Public Policy and Financial Markets.

It's Wednesday, June 9, at 10.30 a.m. in New York.

We got a lot of questions following last week's podcast on new legislative efforts in the

U.S. to compete with China.

Much of it was driven by two key pieces of news.

The first was the Biden administration increasing the number of companies from China on its restricted

entities list, basically banning U.S. investors from putting money in them.

The other was increasing media and White House scrutiny of the origins of COVID-19.

Together it underscored the notion we put forward last week.

Despite some recent quiet, the U.S.-China relationship, which has grown tense in recent

years, is set to get more strained, not less.

So the question this begged was, what does more tension lead to?

In our view, it probably solidifies the consensus among U.S. voters that China's interests

might be incompatible with some of those of the U.S.

That attitude enables an acceleration of trends that were already in motion that would

unwind some of the economic interconnectedness between the U.S. and China.

You've heard us talk about these trends before, globalization, and the shift toward a

multi-polar world.

...