Will Jack Ma’s Sale of Alibaba Shares Sober the American Leaders?
While Chinese leader Xi Jinping was meeting with President Biden and dining with 300 American CEOs in San Francisco last Friday, news emerged that Chinese billionaire Jack Ma’s family trust was set to sell 10 million American Depository Shares of Alibaba Group Holdings on November 21, fetching approximately $871 million.
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Why Is China Siding with Hamas?
Since Hamas attacked Israel on October 7, brutally massacring 1,400 Israelis and taking 200 hostage into Gaza, China has taken the side of Hamas, condemning what they have called Israel's "excessive retaliatory actions."
On October 14, Chinese Communist Party Politburo member and Foreign Minister Wang Yi, in a conversation with the Saudi foreign minister, stated that Israel's actions had surpassed the boundaries of self-defense. He emphasized that the historical injustice against Palestine, persisting for decades, must come to an end.
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The Paths to Rescue China’s Economy Are Closing
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The Chinese economy is confronted with significant hardships, and among the limited options available, there are two paths more likely to rener viable remidies: full reintegration into the global system or a short-term real estate sector boost to prevent an immediate collapse while exploring alternative solutions. However, these options have either been rejected by Xi or pose substantial challenges.
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Beijing Foregoes Guardrails, a Strategic Move?
During the Aspen Security Forum on July 21, U.S. National Security Advisor Jake Sullivan expressed a noteworthy observation regarding China's perception of the U.S.-China relationship. He likened China's stance to viewing the relationship as safer "without seatbelts" and "guardrails."
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The Real Reason Beijing Wants to Win the Word of War
Rhetorical concession leads to cognitive change and behavioral change. Beijing has a complete strategy behind its pursuit of victory in a verbal war.
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China is No Longer an Expanding Economy that Allows Everyone to Succeed
In addition to the lingering economic impact of the Covid restrictions, China faces serious challenges that no policy can reverse in the short term, namely population decline, which will deprive China of its status as the world's factory and devastate the real estate market.
The impact of population decline is exacerbated by Xi Jinping's unpredictable policies, which have deeply undermined people's confidence in China's political stability. People have stopped investing and expanding their businesses.
As a result, China's economy is shrinking, which means it's not allowing everyone to succeed. Then there is the looming threat of war over Taiwan. If that happens, Western companies could find their capital and people trapped once the war starts. Western shareholders should waste no time in asking their CEOs to make contingency plans.
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