……The American Chamber of Commerce in a Shanghai, China, survey asked 124 business executives their opinions on a Biden presidency, to which a majority, nearly 63 percent, said they are “much more optimistic” or “more optimistic” about their doing business in the Communist country with the former vice president in the White House.
Likewise, the survey found that business executives do not expect Biden to impose more tariffs on China-made products — as President Trump did with billions of dollars worth of goods against the wishes of corporate interests.
……Since 2001, U.S. free trade with China has eliminated at least 3.4 million American jobs. In 1985, before China entered the World Trade Organization (WTO) and before the U.S. normalized trade relations with China, the U.S. trade deficit with China totaled $6 billion. In 2019, the U.S. trade deficit with China totaled more than $345 billion.
Biden supported China’s entering the WTO and normalizing U.S. trade relations with China.
On the other hand:
President Donald Trump’s latest executive order bars U.S. investors from holding ownership stakes in a list of 31 Chinese companies designated to have ties with various Chinese Communist Party (CCP) military apparatuses.
This order, while somewhat limited in scope, ensnares several well-known Chinese companies including non-public companies such as Huawei and publicly traded companies such as China Mobile and Hangzhou Hikvision. The 31 companies were previously designated by the Pentagon as being “owned or controlled” by the People’s Liberation Army (PLA), the official name of the Chinese military. (The list of companies can be found here and here.)
The action could be a sign of things to come for Chinese companies with close ties to the CCP; U.S. capital could prove increasingly hard to come by. In addition, examining the foreign ownership base of these companies reveals that a number of them are partially owned by prominent U.S. investment firms, insurance companies, and pension funds.
Trump’s latest measure at restricting Chinese companies would prevent U.S. capital from funding China’s military and intelligence agencies that could hurt U.S. interests. It bans U.S. citizens and companies from purchasing new shares of the listed companies beginning Jan. 11, 2021. Current investors who own shares of these companies have about a year, until November 2021, to exit their investments.
……An analysis …..of ownership of these 31 Chinese companies reveals that billions of U.S. capital have already flowed into shares of these companies, all of which allegedly have ties to the CCP military or intelligence agencies.
Of the 16 publicly-traded firms either on the list or are subsidiaries and related parties of companies on the list, U.S. entities currently hold shares worth approximately $14.9 billion, based on closing prices as of Nov. 20 and latest available public filings data compiled by Bloomberg.
The vast majority of the $15 billion is invested in two of China’s biggest telecommunications giants. The first is China Mobile Ltd. with $8.1 billion invested via both the New York-listed ADR shares as well as the Hong Kong-listed shares. The company with the second-largest amount of U.S. capital is New York-listed China Telecom Corp with $2.3 billion of investments. Both firms are believed to have links to the PLA, according to the U.S. defense department.
The United States had better start taking the threat from China seriously; economically and militarily.
Last I checked, Beijing is ruled by a communist totalitarian regime. Why is anyone doing business with them?
The Chinese have engaged in cyber attacks, spying, economic espionage, and actual threatening of U.S. Naval vessels. Yet these former officials and the Feds think giving them money, technology, and contributing to the Chinese threat are good ideas.
Just some reminders of how batshit crazy that is:
China builds artificial islands and militarizes them.
China announces that its nuclear submarines can hit the U.S. with missiles.
A senior Chinese officer declared that China should ‘topple U.S. dominance’. Whether China can actually pull this off is a matter of great debate, but the fact that they have their claws sunk so deeply into us economically should be a wake-up call.
Propping up a communist totalitarian regime with capitalist dollars is suicidal. China is an enemy and should be treated as such instead of having the privilege of being a business associate. Doing business with a communist country will not transform it into a freedom-nurturing society. There will come a day when all of the money we pour into China will come back to bite us in the ass. You can bet on it.