#239 China Investors Are Running Scared | Benjamin Qiu
Feb 5, 2024
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Benjamin Qiu, an expert on China's economy and its impact on global markets, joins the podcast to discuss the shrinking Chinese economy and the impact of the Hong Kong national security law. They delve into the concerns of lawyers and businesses, the changes in the Hong Kong court system, challenges faced by foreign companies in China, and the implications of China's military-civil fusion policy. Additionally, they explore investing difficulties, opportunities for diversification, and a proposed strategy to address Chinese companies like TikTok.
China's economy could be shrinking, causing investors to short-sell or bail.
Foreign businesses in China face obstacles including unpredictable legislative process and restrictions on freedoms.
Deep dives
The Chinese Communist Party's stranglehold over the economy worries foreign businesses
Foreign businesses are becoming increasingly concerned about the Chinese Communist Party's authoritarian control over the economy, with Chinese companies also looking to escape from the country.
The decline of Hong Kong's importance in the Chinese economy
Hong Kong, which was once an essential part of the modern Chinese business and cultural circles, has seen its economic significance decline over the years. Other cities like Beijing, Shenzhen, Guangzhou, and Shanghai have emerged as key economic centers.
The impact of the national security law in Hong Kong
The introduction of the national security law in Hong Kong has had significant implications, particularly targeting political activists and pro-democracy individuals. Concerns regarding the erosion of civil society and the rule of law have led to unease among the business community.
Challenges and uncertainties for foreign businesses in China
Foreign businesses operating in China are facing various obstacles, including difficulties in due diligence, an unpredictable legislative process, restrictions on data transfer, and restrictions on freedom of expression. The increasingly complex business environment in China raises concerns and uncertainty for foreign investors.
China's rocket-fueled economic rise has not only slowed significantly in the past few years, but if you strip away all the government propaganda that makes the economy look better than it is, China's economy could even be shrinking. This has investors short-selling or bailing faster than the passengers on the Titanic. In this episode of China Unscripted, we discuss the effect that the Hong Kong national security law had on Hong Kong, how that's affecting the economy, and what the Hong Kong security law 2.0 might look like. Joining us in this episode is Benjamin Qiu, an attorney at Elliott Kwok Levine & Jaroslaw, a New York based law firm that, among other things, advises corporations on how to handle the risks of investing in Hong Kong and Mainland China.
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