impact China new restriction on GOOS and QSR

Of note, i recently listed to a podcast from a Chinese-born reporter who pointed to the fact that this is the 100th year of the Chinese Communist party and they are simply taking steps to remind everyone 'who is in charge'. The steps seem particularly harsh because its the 100th year, but is not new as they've taken similar steps in years past to re-assert themselves.

In some cases, it appears justified and there are true private monopolies forming that they are trying to break down. Think alipay, baba and the like. This is not unlike the criticisms pointed at big tech here in NA. Regardless, something to watch.

Mat

Hey Tom,

Good questions. China seems to be aggressively getting involved in all aspects of their economy and it really is uncertain where all of this will land. China is still reliant on imports in many industries, so they can't carte blanche restrict all industries. It'll be interesting to see how this all evolves.

In terms of those companies with Chinese expansion plans, I think it is worth keeping an eye on but would not be making any rash decisions solely on that uncertainty. For its part, GOOS has plenty of expansion opportunities outside of China and QSR still has plenty of growth left in it in NA. GOOS and QSR certainly aren't the only ones with Chinese expansion plans, there are hundreds of others (if not thousands). I would not react until I knew with certainty that their expansion plans in China would be put on hold as a result of these new restrictions. Every handful of years, China puts the fear into the markets - this is not new. It is however, something to keep an eye on.

Obviously, one would need to do what is within its risk tolerance.

Mat