China Insider Xi's Latest Military Purge, Assessing Effectiveness of Tariffs, and Capital Repatriation
Dec 3, 2024
The discussion kicks off with the dramatic purge of Admiral Miao Hua, revealing shifting power dynamics in China's leadership. Next, the conversation dives into the rationale behind U.S. tariffs on Chinese imports, arguing that they address unfair practices and bolster domestic manufacturing. Finally, the challenges foreign investors face when repatriating capital from China are explored, highlighting the risks posed by stringent government policies and their repercussions on international investment.
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The Purge Pattern
- Xi Jinping's latest purge of Admiral Miao Hua reflects a familiar pattern in CCP history.
- The most loyal subordinate rises to power, becomes a threat, and is then purged.
The Tariff Argument
- Tariffs on Chinese imports are necessary to counter exploitative trade practices, boost domestic manufacturing, and increase disposable income.
- This can be achieved by offsetting tax reductions and leveraging China's reliance on US exports.
China Investment Risks
- Be wary of investing in China due to the government's restrictions on repatriating profits.
- These restrictions create financial traps, especially for Taiwanese businesses, and violate free-market principles.