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Trading The Globe: China

With President Obama traveling in China, Wall Street is once again looking at new ways to profit from our blossoming relationship.

We think Obama may have revealed an important clue about the future in the following statement

"We have to understand that the future of the United States and Asia is inexplicably linked. The issues that matter most to our people, issues of economic growth and job creation, non-proliferation, clean energy, these are all issues that have to be part of a joint agenda."

What should you be watching?

Yuan

The drumbeat of calls for China to allow the yuan to get stronger seems to be growing louder.

On Monday the IMF added its voice to the call – and said a stronger Chinese currency must be part of the package of “necessary reforms.” The commentary is similar in language and tone used by the Obama administration -- and President Obama himself -- during his China visit this week.

However, that Western ‘drumbeat’ may be falling on deaf ears. China's Commerce Ministry on Monday rebuffed both calls.

For the past year the yuan has been almost frozen in place against the dollar, as Beijing strictly regulates the nation’s currency. Many analysts now believe that economics and not politics is what will convince Beijing to allow the yuan to float – and that will require a surge in domestic demand.

China-Trade War

Meanwhile, the administration is downplaying any chatter of a US-China trade war.

Robert Hormats, the US Under Secretary of State for Economic, Energy and Agricultural Affairs, said although "tensions, misunderstandings and frictions" were inevitable between China and the US, he was certain they would be resolved through talks.

Tensions between the two countries intensified last month when the United States slapped anti-dumping tariffs of up to 99 percent on imports of some Chinese steel products used in the oil industry.

China branded the decision an "abuse of protectionism" and retaliated by launching its own probe into US car imports.

And in September the Obama administration announced it would slap duties on Chinese-made tires.

But that may be a lot of tempest in a pot of tea. “Our two countries are perhaps the most important players (in the world) and to make it work, we have to work together," Hormats said.

Green Technology

As we told you on Friday, the push for clean energy appears to also be a central theme of President’ Obama’s trip.

In fact, clean energy related companies were among some of the best performers with solar energy play Shenzhen Topraysolar and Baoding Tianwei Baobian Electric notable beneficiaries from the Obama visit.

What’s the trade?

I like Ford , says Joe Terranova. A lot of their recovery is coming from demand in China.

I’d get long China’s real estate, says Tim Seymour and I’d play it with Claymore/AlphaShares China Real Est ETF or E-House (China) Holdings Limited
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Trader disclosure: On November 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (GE), (INTC); Finerman Owns (RIG), (FLS); Finerman's Firm Owns (CSCO), (RIG), (MSFT), (NOK), (PLCE), (TGT); Finerman's Firm Is Short (USO); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WMT); Finerman's Firm Is Short (IJR), (MDY), (IWM), (UNG); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (FLS), Is Short (FLS) Calls; Terranova Owns (GS), (JPM), (SU), (AAPL), (GOOG); Terranova Works For (VRTS); Terranova Owns Dec. Crude Oil . Futures; Terranova Owns Dec. Gold Futures; Terranova Owns Dec. Nat Gas Futures

For Brian Kelly
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