Watch “The Future of the U.S. and China Conference 2022: The Financial Relationship” on YouTube 在 YouTube 上觀看“2022 年中美會議的未來：金融關係”.
A good 1 hour session from the Asia Society Seek Truth From Facts conference held about a week ago. Salient points :
The US is shooting itself in the foot by limiting Chinese companies from tapping the US capital market. This is one of the few areas which really makes sense for the 2 countries to cooperate for a win-win solution. In the short run, US investors will lose a chance to participate in the growth of Chinese companies, and in the long run, the Chinese people will think that the US is trying to slow down or prevent China’s rise and success of Chinese companies in the international market. This will have a serious long term negative effect on the US.
The effect of this action on Chinese companies is minimal, as China has access to international investors from the EU and the middle east. They can also relist on the HK and Chinese stock markets as what they have been doing. Sophisticated US investors will find ways to invest in them anyway. The politicians in DC are gravely mistaken and overestimate the effect on Chinese companies.
The headline news of China clamping down on Chinese internet companies is misinterpreted as China clamping down on all private companies. This is not true. The companies in the internet space in China are only a fraction (11 out of 550) of the largest companies in China. Many of these large companies are ones we have never heard of in the US. China’s private sector is expanding and investing as what they have been doing before the crackdown. The Venture Capital sector is booming.
Most of China’s recent investments are in the manufacturing, auto, and health care sectors, with only 2% in the consumer internet space, whereas in the US, a large portion is in the consumer internet space.
The US turned negative against China since Xi became the head of the CPC in 2012. Before then, China was not seen as a communist country with all the negative baggage of what that implies, whereas now it is. So the antagonism towards China from the US congress and politicians is ideological and creates blinders.
US business had very little influence in the present administration. Little hope of change in the short term. In the intermediate term, hopefully US business and people can influence the US government to move in a positive direction. People outside of Washington may not be as antagonistic towards China as the US congress and politicians.
Johnson Choi Biz 