White House Considering Block or Restrictions on U.S. Investments in China…

There are two aspects to this recent story: the visible surface issue; and the unspoken issue below the surface.  In essence, there’s more here than most will recognize at first blush.

The surface level aspect is the Trump administration considering a block on U.S. investments into the opaque financial system that is China.

The U.S. financial media view the proposal through the prism of the White House looking for leverage over Beijing during negotiations:

(Via CNBC) […] Restricting financial investments in Chinese entities would be meant to protect U.S. investors from excessive risk due to lack of regulatory supervision, the source said.

The deliberations come as the U.S. looks for additional levers of influence in trade talks, which resume on Oct. 10 in Washington. Both countries slapped tariffs on billions of dollars worth of each other’s goods. The discussions also come as the Chinese government is taking steps to increase foreign access to its markets.

Bloomberg News first reported earlier on Friday that Trump administration officials are considering ways to limit U.S. investors’ portfolio flows into China, including delisting Chinese companies from American stock exchanges and preventing U.S. government pension funds from investing in the Chinese market. (read more)

The below-the-surface issues are not widely discussed.

First, here’s an interview that just might make your jaw drop.  Listen to Michael Bloomberg become an apologist for the communist regime in China, simply because Beijing is holding his financial assets hostage.  Seriously, this is alarming. WATCH:

 

Could you even imagine that guy being President? With that outlook toward China?  Bloomberg is known in U.S. left-wing social circles as an “environmentalist”, yet did you hear him say China moving the coal plants to just outside the city is a solution?  …. As if smog and pollution is best solved through relocated geographics’.  That’s how financial engagement with China turns people into pretzels… hostage pretzels to their financial self-interests.

Moving on… Despite the Wall Street pundits proclamations, it is clear by now that President Trump is methodically decoupling the U.S. from China.  President Trump has been subtle at times with hints, and then not-so-subtle at other times with deliberate warnings to U.S. companies.

A good example of the dynamic is found in President Trump’s discussions with Apple CEO Tim Cook.  It is clear that President Trump doesn’t want to harm U.S. companies, but simultaneously he needs them to accept that there is almost no possibility of a U.S-China trade agreement.  Therefore the administration is in somewhat of a strategic influence-game with U.S. multinationals.

If you begin looking at the U.S-Chinese investment situation from Trump’s position; and you accept there is not going to be a trade agreement; then you can see POTUS trying to protect U.S. investments from the fallout.

China needs dollars; everyone who follows trade and China’s economic position understands that without dollars China sinks.  The current economic weakness in Europe is driven partly by China getting less dollars due to their conflict with the U.S.

It is the reverse exfiltration problem.  With less dollars inbound to Bejing, China has to limit purchases from other nations;  less purchases from Europe are an outcome.  This is a source of contention from Germany, France and the EU.

President Trump appears to be looking for ways to influence the withdrawal of U.S. investments, especially pension and retirement accounts, from what he and Treasury Secretary Steven Mnuchin perceive as high-risk exposure in China. However, it’s not because the administration wants to pressure Beijing; but rather because the administration is attempting to protect American investment interests.

President Trump knows as soon as he fully decouples, all investment assets in China will plummet…. and everyone knows China’s financial markets are tenuous at best.  Trump has been warning American interests, albeit carefully and with nuance, to position themselves according to a predictable outcome.  This latest series of discussions is simply an extension of the Trump administration trying to get people to think ahead…. forced medicine.

More on China’s financial position:

This entry was posted in Big Government, China, Communist, Donald Trump, Economy, Election 2020, Hong Kong, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

179 Responses to White House Considering Block or Restrictions on U.S. Investments in China…

  1. Zippy says:

    Why is everyone missing THIS most likely reason for any Chicom stock ban? BTW, Bass has been advising the Trump administration for months:

    Liked by 4 people

  2. MLK says:

    It’s important to remember the immediate domestic political context which, in my view, overrides anything particular relating to the China negotiations and prospects or lack thereof of a trade deal.

    The POTUS spent more than a year beating the Fed and its chairman about the head on Interest Rates and QT. The Fed surrendered its role in The Resistance at the end of 2018, having been made entirely liable for tanking the stock market and, prospectively, tipping the US into recession. Before giving up the ghost, the Fed was doing its part in laying the social mood predicate for removing Trump from office.

    That is by way of background for understanding what the POTUS has laying the groundwork for this fall. In short, making the Democrats liable for any market crash and, worse, beginning of a Bear Market following their vote of Articles of Impeachment. Do you think Nan and Chuck are ready for a 1,000 point drop in the Dow that day, because that’s what they’re going to conjure.

    Moreover, following this the POTUS will hammer theDemocrats non-stop over their refusal to pass USMCA.

    Like the position the Fed was in, the Democrats will own all of the downside and none of the upside. All courtesy of Trump’s relentless messaging. He’s already teed this metric up in terms of what will happen to the market (and everyone’s 401Ks) if a Democrat is elected. Don’t for a moment think he won’t deploy that between now and then, as the market prices in to the downside the risk thereof.

    Liked by 2 people

  3. Ish Kabibble says:

    When the, Trump policies decouple the US from China, most of the monies used to control and corrupt politicos worldwide will be unavailable. China will no longer be able to project with finance and their tentacles will atrophy. This is what much of the screeching is about.

    Liked by 5 people

  4. Pegon Zellschmidt says:

    Kyle Bass voted for Hillary Clinton in 2016, calling her the “best of the bad choices,” and that he would “immediately” vote for Warren because of her tough stance on China’s human rights and trade record.
    “Warren would be a problem for China,” said Bass, who is a longtime vocal critic of China. More than some of her rivals, Warren has called out China’s environmental, currency and labor policies. Bass credited her for signing a letter in April that urged President Donald Trump to punish Chinese officials overseeing human rights abuses in Xinjiang.
    “She’s the most competent candidate that has the best ability to develop practices for US national security over time,” Bass said.
    Although he supports Trump’s trade agenda, Bass suggested he’s not a fan of the way the president acts.
    https://www.cnn.com/2019/08/08/business/kyle-bass-elizabeth-warren-china-trade-war/index.html

    Like

  5. Elric VIII says:

    Why would any American person or corporation want to invest a single dime in a Communist country? They would get much better odds if they just go to Las Vegas.

    Liked by 3 people

    • Elric,
      “Why would any American person or corporation want to invest a single dime in a Communist country?”

      Because – “Greed is good! – Gordon Gecko”

      Liked by 1 person

    • cattastrophe says:

      Elrick VIII, watch the Epic Times video. It’s explained quite precisely, along with that China’s road map, and how bribery, especially in Africa, has cut out US companies from participating there. In fact, to my mind, it explained everything you need to know about how China operates and how they can only operate with western dollars, especially US dollars. It’s the most enlightening video I’ve ever seen on the subject and I’m sure President Trump has a complete understanding of all of it.

      Liked by 2 people

      • Peg_C the Deplorable says:

        We expect cultures who, as a matter of government POLICY, harvest organs from religious groups they don’t like, often with no anesthesia, to adhere in business to our principles of law and fairness. Insanity.

        Liked by 1 person

      • sturmudgeon says:

        catastrophe: love your moniker… I agree, a wonderful, educational interview… Thought Leaders’ interviewer is the best of the best, with his thoughtful remarks and questions.. How great it is to have alternatives to the msm idiots… Thanks, T.L., and Epoch Times!

        Like

  6. Bigly says:

    Love me some Kyle Bass. So many gems in his words, I listened a couple of times. Would love to be a fly on the wall listening to Bass and trump have a discussion over dinner. The 2 men deeply love our country and passionately want it to survive.

    Bass doesn’t want to get into politics but having a slight recession or worse next year – while it puts fear in many, my bet is trump actually would embrace it as positive negotiating power – then come into the 2022 elections with wind in our sails.

    Warren would destroy everything he he prescribes – how these guys do not see the politics in their directionless familiar is strange to me – the reason we are here is because of political pressure and unskilled foresight. But I digress. Thanks for posting.

    Like

  7. pageoturner says:

    It’s worth your time to find and watch “The China Hustle” about bogus Chinese companies listed & flogged on the US stock exchanges.
    The US has no way to verify the claims of sales, ownership or profitability of Chinese companies. Further, there is no law against lying to foreigners. Quite the contrary. Lying to foreigners is considered good form.

    Liked by 2 people

  8. jane says:

    This is possibly VERY relevant – connects the Chinese stealing military technology with Burisma. A member of The_Donald Reddit did this research. Sorry, the cut and paste doesn’t work with the source links but there’s a shareable link at the bottom:

    Posted byu/traqbak
    1 day ago
    Biden, Kerry, Heinz, and Archer Timeline
    CORRUPTION
    I’ve spent the past few nights in never ending rabbit holes on US, China, and Ukraine relations over the past 10 years..I’ve took what I believe is the most critical and important information and structured this timeline, from 2009 until Biden’s decision to run for president.

    2009

    Hunter Biden (son of Vice President Joe Biden) and Chris Heinz (stepson of Secretary of State John Kerry) create Rosemont Capital, an international investment firm with the help of Devon Archer, a businessman and close friend of Heinz. Rosemont would eventually expand and adding two branches, Rosemont Realty and Rosemont Seneca Partners.

    source

    2013

    After months of tough talks with China. Biden & Kerry back down on the South China Sea Dispute. At which point China immediately ramps up activity on the disputed territories mostly with military bases being constructed.

    12 days later the bank of China creates an investment fund with Rosemont Seneca, a branch of Hunter Biden and Chris Heinz’s Rosemont Capital. The fund name was Bohai Harvest Rosemont more commonly known as BHR.

    China also allows Rosemont to set up shop in the shanghai zone..which means Rosemont would actually be allowed to take chinese goverment money and actually invest it outside of China..even in the US. Making rosemont the only western company in world with that power.

    Within 2 weeks the BHR fund secured $1.5 billion dollars.

    source

    2014

    John Kerry visits China, a climate accord is reached between China and the US and it’s headline news around the world.

    source

    What doesn’t make headline news is a state-backed chinese company under the name of Gemini purchases 75% of Rosemont’s Realty branch for $75 million…a few months later, Gemini invest $34 million into a Rosemont fund.

    source

    Hunter Biden is discharged from the US navy for cocaine usage..

    source

    White House records show Joe Biden holds a meeting in white house with Devon Archer.

    source

    Devon Archer opens a foreign limited liability company under the name Rosemont Seneca Bohai LLC, using a Ft. Lauderdale Adress.

    source

    5 days later, Biden travels to meet with Ukrainian officials in Kiev and offers Ukraine $1 billion to help aid Ukraine’s natural gas industry and economy.

    source

    Less than a week later Devon Archer joins the board of Burisma, a Ukrainian natural gas company.

    source

    2 weeks later Hunter Biden joins Archer as a board member of Burisma, coincidentally this is around the same time Senator Edward Markey along with 3 other senators write Obama a letter asking for increased aid in Ukraine around the same time.

    “We should leverage the full resources and expertise of the U.S. government to assist Ukraine in improving its energy efficiency, increasing its domestic production, and reforming its energy markets,” wrote Markey, who has also proposed legislation with about $40 million in additional aide for Ukranian energy development.

    source

    Neither Hunter nor Devon had any experience in the energy sector field, records obtained show Hunter Biden was being paid north of $50,0000 a month by Burisma.

    source

    Meanwhile back in China, a company named AVIC (aviation industry corporation of china) has been secretly stealing US technologies related to a F-35 stealth fighter jets..AVIC also teams up with a fund known as BHR, the same BHR fund that is owned by Biden and Kerry’s sons and had secured $1.5 billion from the chinese goverment.

    source

    Burisma makes a $3.4 million dollar payment to Rosemont Seneca Bohaii LLC.

    source

    2015

    AVIC buys 51% of a technology known as henniges, Biden and Kerry’s BHR fund purchases the remaining 49%.

    source

    Henniges was an anti-vibration technology considered a dual use because it’s used in on military vehicles..like an F-35.

    This technology was on the restricted commerce list so it would be require the approval from the committee of foreign investments of the united states for it to be released..the person in responsible for that decision? John Kerry, the secretary of state, and the stepfather of chris heinz who’s BHR fund bought 49%.

    His state department approved the deal the same year.

    source

    BHR then teams up with a Beijing company this time to buy 100% of a rare earth material called molybdenum. 4 years earlier, the US had filed a complaint to the world trade organization charging Beijing with attempting to control the worlds rare-earth minerals, the WTO ruled in the US’s favor.

    source

    Back in Ukraine, Burisma makes another $3.4 million payment to Rosemont Seneca Bohaii, LLC..sparking a potential corruption probe into the natural gas company, which 2 years earlier had placed Hunter Biden and Devon Archer as head board members after Joe Biden used $1 Billion of US money to help boost Ukraines gas and economic industries.

    source

    2016

    a high profile Ukrainian prosecutor by the name of Shokin launches a relentless corruption probe into Burisma..and almost instantly started feeling pressure receiving pressure from the ukranian president to not pursue any further in the investigation of Burisma.

    source

    “On several occasions President Poroshenko asked me to have a look at the case against Burisma and consider the possibility of winding down the investigative actions in respect of this company but I refused to close this investigation,” Shokin would later claim in reports recently obtained by the hill.

    So despite Shokin’s best efforts and unwillingness to pursue justice, as he got closer to bringing hunter biden in for questioning regarding $3.4 million, so did the pressure from Ukranian officials..which were in constant contact with US vice president Joe Biden.

    source

    A withdrawal is made from Rosemont Seneca Bohaii’s account on March 7th and it’s the last activity ever recorded.

    source

    Days later, Biden threatens Ukraine to end the investigation or he would cancel $1 billion in US loan guarantees.

    a video has since surfaced in 2018 of him bragging about the blackmailing of Ukraine with US Taxpayer money to have Shokin terminated.

    source

    “I said, ‘You’re not getting the billion.’ I’m going to be leaving here in, I think it was about six hours. I looked at them and said: ‘I’m leaving in six hours. If the prosecutor is not fired, you’re not getting the money,'” Biden recalled telling Poroshenko.

    But Biden Actually flew Poroshenko to Washington for a ‘working lunch..’

    source

    and the investigation into Burisma ended.

    2017

    June, Devon Archer along with two other men are arrested for conspiracy to commit securities fraud that totaled more than $60 million.

    source

    2018

    November, a jury finds Devon Archer along with the two other men guilty of conspiracy to commit security fraud.

    But U.S. District Judge Ronnie Abrams overturned the jury’s decision on Devon Archer, ruling..

    “the evidence at the trial earlier this year had not shown that the man, Devon Archer, knew that the bond issue was fraudulent, or that he received any personal benefit from it.”and said she was “left with an unwavering concern that Archer is innocent of the crimes charged.”

    She upheld the convictions of the other two men who were tried and convicted alongside Archer.

    source

    2019

    April 20th, Hunter Biden leaves Burisma.

    source

    April 25th Joe Biden announces his candidacy for president of the United States.

    source

    Shareable link: Biden, Kerry, Heinz, and Archer Timeline
    https://truthbits.blog/2019/09/28/biden-kerry-heinz-and-archer-timeline/

    Liked by 3 people

  9. MfM says:

    How could Bass be so clueless about Trump? I was listening to him while I was doing something and when he got to the end??? I couldn’t believe he thinks Warren is an option! He wouldn’t name previous administrations or what they did with China, but thinks Trump is an idiot.

    Liked by 1 person

  10. citizen817 says:

    Liked by 1 person

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