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New Target for Kevin McCarthy: China

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New Target for Kevin McCarthy: China

Author: Greg Valliere

November 21, 2022

STILL NOT A SHOO-IN to become the next House Speaker, Rep. Kevin McCarthy is looking for issues that will please his restive troops — impeachments, spending cuts, etc. — and now he has another issue: China.

McCARTHY SAID YESTERDAY that he would form a select committee on China if he is elected speaker in January, accusing the Biden administration of not standing up to Beijing. “China is the No. 1 country when it comes to intellectual property theft,” he told Fox News yesterday. “We will put a stop to this and no longer allow the administration to sit back and let China do what they are doing to America,” he declared.

A VISIT TO TAIWAN? McCarthy is a staunch supporter of Taiwan; he praised Nancy Pelosi’s visit to the island last spring, and reportedly is considering his own visit this winter. That could raise tensions dramatically between Beijing and Washington.

ANTIPATHY TOWARD CHINA is one of the rare issues in this city that unites the progressive left and the Trump populists. Both sides believe China spies on the U.S., treats its dissidents poorly, has not been transparent on Covid and competes unfairly on trade. Donald Trump surely will echo those themes in his campaign.

WE WERE ENCOURAGED EARLIER THIS MONTH when Presidents Biden and Xi pledged to communicate more regularly, lowering the temperature between the two countries. But the level of mistrust is enormous, and McCarthy needs issues that can increase his support from the very conservative House activists, who haven’t fully committed to voting for him in early January.

AMONG THE OTHER ISSUES McCarthy will emphasize are oversight hearings on everything from the Texas border to the Afghanistan withdrawal — and, of course, on Joe and Hunter Biden’s business activities (some conservatives want to impeach the president).

THE MOST CONTROVERSIAL — and politically risky — issue that McCarthy faces is whether to embrace modest Social Security and Medicare benefit curbs. This didn’t help the GOP in the Nov. 8 elections, and Senate Minority Leader Mitch McConnell has adamantly declared that this will not be on his agenda.

BUT CHINA WILL BE ON EVERYONE’S AGENDA next year, with McCarthy latching on to an issue that could unite the fractious House. Our bottom line is that relations between the U.S. and China will stay rocky, with no major breakthroughs on issues like trade.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

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©2023 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

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