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James_Miller comments on Stupid Questions September 2015 - Less Wrong
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Yes, although with China you can't necessarily leave when you want as the government might restrict sales.
No, but by investing in U.S. firms that do business in China you are not ignoring it.
US firms? Your main China exposure is going to come from your Aussie mining exposure.
We are talking about index funds. I don't think a US equity index will give you any meaningful exposure to specifically China (as opposed to, say, some global factor like risk appetite).