Thursday, October 27, 2022

What Xi Jinping's Third Term in Power Means for Investors.

"Once people walk away, the tea becomes cold." - Chinese saying 

When the Motley Fool says the "tea has grown cold" they are talking about China itself.

Xi Jinping has made it clear in word and deed that he intends to return China's economy to its Marxist roots. When the government faces a major financial challenge in the future (and those challenges are coming) - the first assets to be seized "for the common good" will be foreign assets. Think of Venezuela and the foreign oil companies.

This line from the article stood out for me, "Any investment in China absolutely, positively must be in alignment with the interests and goals of the CCP." The line immediately made me think of BlackRock and Ray Dalio. Two of the biggest proponents of Chinese investment in the West. Do you think BlackRock's investment are aligned with the interests and goals of the CCP? Or with those of America?

Why any foreigner or foreign company would invest in China at this point is beyond me.

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