China Builds the South
Diego@diego
−1.5%
since Oct 6
The idea
I think the world is splitting into more than two blocs, and the overlooked one is the Southern Hemisphere going industrially Chinese: not through ownership of local companies, but through Chinese factories, machinery, and logistics taking root across Latin America, Africa, and Southeast Asia. This basket leans into the Chinese builders expressing that shift, backed by the commodity suppliers feeding them, the southern economies hosting the buildout, and the shipping lanes connecting it all.
What it owns
- Companies physically expanding Chinese commerce, manufacturing and logistics into southern markets. · PDD HoldingsIt owns Temu, the clearest listed way to track whether Chinese e-commerce platforms take root in Latin America and beyond rather than retreat to China., Alibaba GroupIt operates AliExpress for commerce and Cainiao for logistics, embodying China's plan to build delivery networks in southern markets., ZTO ExpressIt moves parcels for Temu and AliExpress orders and is expanding delivery capacity outside China as regional networks take shape., JD.comIt owns warehouses and trucks, the model China is expected to export south by building integrated retail and logistics in new markets., Li AutoIt represents Chinese EV makers exporting factories and sales into the south, the model exemplified by manufacturers landing plants in Brazil., XPengIt actively sells vehicles outside China, tracking whether Chinese EVs gain ground in southern markets rather than face barriers., Full Truck AllianceIt built China's digital freight network and represents the playbook for exporting that model to southern markets.44%
- Mining and materials producers in the south whose output feeds the factories and supply chains moving into those regions. · Vale S.A.It ships iron ore from Brazil to Chinese industry, the raw feed for the southern industrial buildout., Sociedad Química y MineraIt supplies lithium from Chile to feed Chinese EV and battery factories setting up in the southern hemisphere., Freeport-McMoRanIt supplies copper to the factories, EVs and infrastructure expected to build out across the hemisphere with Chinese investment., Southern CopperIt mines copper in Peru and Mexico, making it both a feedstock supplier to China and a southern economy absorbing Chinese demand.19%
- Shipping companies moving machinery and finished goods south and raw materials back north as trade volume rises. · ZIM Integrated ShippingIt runs container ships on routes carrying Chinese goods to southern markets, so rising trade volume shows directly in freight rates and earnings., Star Bulk CarriersIt carries iron ore and raw materials from the south back to China, the return leg of the trade flow the take describes., Danaos CorporationIt leases container ships to carriers running China-south routes, earning from the buildout without betting on any single operator.14%
- Companies in developing economies that benefit as Chinese capital, equipment and commerce arrive and integrate locally. · Sea LimitedIt operates Shopee, a regional commerce platform positioned to benefit as Chinese goods and capital flow through Southeast Asia., Itaú UnibancoIt finances factories, suppliers and workers in Brazil, the economy where Chinese industrial presence and logistics infrastructure are expected to land., Grab HoldingsIt is the local logistics and delivery layer in Southeast Asia that Chinese commerce rides on and invests in.14%
- This take includes positions across multiple sectors and themes. · It operates Latin America's largest e-commerce platform and recently opened a China fulfillment center to capture cross-border trade flows from Asia into the region.5%
- Cash5%