Wall Street is finally waking up to the reality of China

This week, the Chinese Communist Party dealt a humiliating blow to Wall Street, by crushing a major Chinese tech firm days after its IPO in which investors had invested 4.4 billion dollars


On July 2, just two days after Goldman Sachs, J.P. Morgan and Morgan Stanley launched an initial public offering for the Chinese ride-hailing app Didi on the New York Stock Exchange, Chinese regulators cracked down on the company hard. 


Citing data privacy concerns, the Chinese government ordered the removal of Didi’s app from app stores, pending an opaque national security review process. As a result, investors have lost 30% of their money in just a few days


It’s a watershed moment that has even the most die-hard Wall Street China boosters finally admitting that the game has fundamentally changed.


Until now, many in the financial world wanted to believe the Chinese Communist Party was fundamentally pragmatic. They insisted that Beijing would never risk its economic development by killing its Wall Street cash cow, and that investors could always count on rational decision-making and solid returns. 


None of that is defensible anymore. It is now abundantly clear that the Chinese Communist Party is determined to increase its control over all Chinese industries, hence none of these companies can claim to be independent from the Chinese Communist Party.


No more can Wall Street, Lawyers and Political Lobbyists deny that Chinese companies under the direct control of the Chinese Communist Party. That means Beijing can squash them or pilfer their coffers at any time — for any reason. 


Funneling Americans’ money into Chinese companies that have zero transparency, zero accountability and zero independence from the Chinese Communist Party is both bad for investors and bad for America.


Read more:

https://www.washingtonpost.com/opinions/2021/07/08/xi-jinping-sends-a-harsh-message-to-wall-street/


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