China viewed more favorably than U.S. in poll snapshot

The change comes as U.S.-China relations remain strained and the broader geopolitical backdrop is still fragile. Adalytica’s U.S.-China relations sentiment gauge is at 4, or “Extreme Fear,” while its China policy-direction sentiment stands at 93, in “Extreme Greed,” underscoring the widening gap between Beijing’s domestic policy momentum and the deterioration in bilateral trust.

Markets are already pricing that divergence in uneven ways. The iShares China Large-Cap ETF, FXI, has climbed to 36.08 from 34.13 on July 17, with its 50-day moving average at 34.25 and momentum still positive despite the recent pullback from August highs. The iShares MSCI China ETF, MCHI, has also advanced to 56.01 from 50.91 in early July, while the SPDR S&P 500 ETF Trust, SPY, has pushed to 769.79, showing that global investors are still willing to own both markets even as the political narrative changes.

The polling shift also fits a broader reading of the global mood. Adalytica’s Global Stability Sentiment sits at 86, labeled “Extreme Greed,” reflecting heightened awareness around geopolitical risk even as risk assets hold up. For investors, that means China’s image gains may support more willingness to rotate into Chinese equities and Asia-linked assets, but they do not erase the structural risks from policy uncertainty, export controls and diplomacy.

The key question now is whether China’s reputational edge translates into harder economic advantages, from stronger tourist flows and trade ties to improved capital-market access, or whether it remains a momentary perception swing in a still-hostile strategic environment.