The United States Trade Representative office stated on Tuesday that new tariffs on various consumer items would be delayed until Dec.15, while other products were being removed from the new China tariff list altogether, explaining that health and security factors played a role in the decision. U.S. stocks rallied dramatically on the news, affecting domestic and foreign stock-based ETFs.

ETFs like the Emerging Markets Internet & Ecommerce ETF (EMQQ) received a sizable boost from the news, as investors see this move benefiting China, while putting stress on U.S. companies with Chinese ties as well.

“Well any delay in the tariffs I think is a good thing. Tariffs are not a good thing. They’re a tax essentially on the people that consume the end products. Any delay to the tariff regime I think is a good idea. And I’d like to think it’s just a negotiating tactic. In terms of affect on EMQQ and e-commerce companies—You know we’re not really involved in the trade war. The trade war is about agricultural products, it’s about manufactured goods. You know the real story in China And emerging markets is the growth of the consumer, and it’s a consumer with a smart phone in their pocket and they’re doing everything online. And that’s a secular sort of one directional thing,” said Kevin Carter, founder of EMQQ on CNBC.

Carter believes that re-balancing in China will help elevate consumption, which in turn is good for these Chinese stocks and the ETFs that have allocation in them.

“Well at the heart of the trade conflict is the idea that China doesn’t consume enough in the manufactures and exports to match. And China knows this, and the government has been working to re-balance their economy towards consumption. So to the extent of that re-balancing increases consumption, I think all those companies benefit. This is really the story. It’s all about the consumer. Emerging markets— the thing that’s emerging are the people. They’re moving on up. They want stuff: more and better food, clothing, appliances. And China, India, wherever it is, that’s the story. And at the heart of our country conflict what needs to happen is China’s consumers need to consume more, and I think those stocks are well-positioned to help them do that,” he added.

One question is whether or not the conflict in Hong Kong will have an appreciable effect on Chinese stocks and emerging market ETFs.

“What’s happening in Hong Kong affects China and affects the world. But I don’t think the stocks to trade in Hong Kong necessarily behave or should be thought of differently as the start of the trade on the New York Stock Exchange,” he said.

Investors looking at emerging market ETFs can also consider the iShares MSCI Emerging Markets ETF (EEM).

Watch Kevin Carter talk about the EMQQ ETF on CNBC:

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