Newlsetter guru Jim Oberweis, whose China Opportunities fund has returned 116% over the last year (more than 95% of its peers), says China stocks face headwinds over trade disputes with the U.S. But, he tells Bloomberg, he doesn’t think we’ll see a trade war between the two international powers.

“If you look at it from a prisoners dilemma point of view, meaning what is rational for all the players in the game, the trade war, it’s not rational for us, it’s not rational for China,” Oberweis says.

Oberweis also says recent policy tightening designed to cool China’s overheating economy is wise. “I don’t think there is much to be concerned about,” he said. “The government is taking very prudent measures so you don’t have a bubble” in stocks and property. The stock price declines caused by the policy moves have made Chinese stocks cheaper and more attractive, he adds.