Commentary Six Chinese technology stocks lost $1.1 trillion worth of market value since they peaked in February, more than a 40 percent drop, according to the Wall Street Journal. U.S. institutional investors, with over $2.3 trillion in the country, are rightly concerned. Many are slowly trying to unwind their positions, without causing the market to drop too quickly by selling in a precipitous fashion. They are watching for any sign of regulatory troubles in China, such as a critical article in a state-run journal, or the initiation of an investigation, which can wipe out billions more of their dollars overnight. Xi Jinping’s aggressive policies are the cause of the market rout in China. Investors unwisely ignored his threats of war against the United States and Australia, and actual territorial incursions, including in air and maritime space, against Taiwan, Japan, India, Bhutan, and the Philippines over the last decade. Now that …
China’s $1.1 Trillion Tech Crackdown Reveals an Existential Threat
August 7, 2021
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