As a capitalist, I believe that freedom of opportunity drives innovation and advancement in all aspects of society.  China, who for decades had been allowing its citizens some of this freedom, had benefited greatly from it.  So, I also find this crackdown troubling.  I see it as an own goal by China.  China has 1.4 billion individuals who when given economic freedom and freedom of thought, and most important freedom to innovate and be different, will account for their greatest advantage in the future if they choose to allow their people to be free.  Instead if they limit the innovation to the imagination of the comparatively small communist party loyalists they will never be able to match the innovations happening in countries with smaller democratic populations.

China cold war is is not a new story, and not a reason to sell everything and wait for economic melt down.  If a true cold war happens, there will be major shifts in the supply chain causing major disturbances in economic markets.  Production will shift from China to other labor intensive countries.     Every advisor needs to have a well diversified portfolio, allocation to assets that will limit the carnage, and negatively correlated assets, if a trade war escalates into something worse than 2018.