A U.S-China trade truce means more localized tech. How to play it

As the U.S. and China settle into an uneasy one-year truce, the takeaway for investors is that each country will double-down on homegrown technology, analysts said. "Own quality exporters and R & D-rich tech stocks aligned with localization, and use scenario odds — not headlines — to assess risk," Morgan Stanley strategists recommended in a report this month on how to navigate the new "export control regime." "The strategic rivalry remains unresolved, with technology, critical supply chains and capital markets at the heart of ongoing tensions," the report said. While Washington has restricted Chinese access to advanced technology and encouraged artificial intelligence-related investment in the U.S., China is ramping up its own spending and resource allocation to advanced technology in its