China: Three Stocks for Now
A recent Foreign Affairs essay frames China’s long game as a campaign to dominate the “frontiers” that determine future power: the deep sea, the Arctic routes, outer space, the digital standards stack, and the plumbing of global finance. An investor can’t “vote” in those arenas—but we can allocate capital toward the companies building the counterweight: secure allied networks, undersea superiority, and space-based sensing.
Below are three companies—U.S. and European—whose products and platforms directly support the United States and its allies as they compete in the domains China is prioritizing.
1. General Dynamics (GD) – undersea advantage and shipbuilding capacity Why it fits the theme: the deep seabed and undersea infrastructure (cables, mapping, undersea autonomy) sits uncomfortably close to naval power. In practice, maintaining U.S. undersea dominance is a strategic imperative, and GD’s Marine Systems business is central to that effort. General Dynamics+1
Two fundamentals (as of December 8–9, 2025):
• P/E ratio: forward P/E about 20.47 StockAnalysis
• earnings growth expected (consensus): EPS growth averages about +16.2% for 2025 and +12.0% for 2026 StockAnalysis
2. Ericsson (ERIC) – allied 5G infrastructure and the standards battlefield
Why it fits the theme: China’s telecom stack isn’t just a commercial story—it’s leverage over networks, data flows, and standards. Ericsson is one of the few globally scaled, non Chinese suppliers of 5G radio access network technology, which matters when countries want performance without dependency. ericsson.com+1
Two fundamentals (as of December 8–9, 2025):
• P/E ratio: forward P/E about 16.62 StockAnalysis
• earnings growth expected (consensus): EPS is expected to decrease about 14.35% next year (FY2026 vs FY2025), reflecting a choppier near-term earnings path StockAnalysis
3. Teledyne Technologies (TDY) – “eyes in space” and high-end sensing
Why it fits the theme: in the space domain, advantage accrues to the side with better sensing, better payloads, and better data. Teledyne’s platform is less “headline rocket” and more “quiet monopoly-grade components”: space-qualified imaging sensors and related systems used across aerospace and space applications. Teledyne Space Imaging+1
Two fundamentals (as of December 8–9, 2025):
• P/E ratio: forward P/E about 26.23 StockAnalysis
• earnings growth expected (consensus): EPS growth of about +26.52% this year and +9.44% next year StockAnalysis
A practical conclusion
The point of this list is not “China fear.” It is portfolio realism. If the next decade is shaped by control of networks, undersea dominance, and space-based sensing, then owning select allied champions in those layers can be a sensible way to participate in the trend—without owning China.
Click here to receive our Ten Best Stocks for the Conservative Growth Investor. Note, only one of the companies listed above made it into our Ten Best.
Disclosures and important notes: This article is for informational purposes only and is not investment advice or a recommendation to buy or sell any security. Forecasts, valuation metrics, and analyst estimates change frequently and may be wrong. Investing involves risk, including loss of principal. Please contact us to discuss whether any security is appropriate for your objectives, time horizon, and risk tolerance, and to confirm current data and any
holdings/positioning in your specific account(s).
