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There are better ways to negotiate the trade dispute with China

[finance.yahoo.com]

Mark Cuban, the American businessman and venture capitalist says here is a better way Trump can negotiate with China. Raising tariffs is punishing American consumers, not China.

Do not allow Chinese IPOs on American stock exchanges. As of February, 156 Chinese companies were listed on major U.S. stock exchanges with a total market capitalization of $1.2 trillion. Halt Chinese stock trading. Kill their IPOs.

He said the loss to American investors would be minimal but will bring China to its knees.

What do you think?

St-Sinner 9 May 23
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9 comments

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0

i wouldn't want to own any Apple, Mcdonald's or Starbucks shares or other US companies operating in china.
if the golden gollum of greed overdoes it then there could be mass boycotts of US companies.

0

ariffs only punish American consumers and producers.

1

So what is the plan to deal with all of the U.S. companies that have outsourced manufacturing to China (and Latin America, and South America, and Southeast Asia, etc) to save a bundle on labor costs? Technically, the products they make overseas and then ship back to the U.S. for sale are considered imports and constitute a fair share of the trade deficit.

Further, how does the Orange Ass Hat explain why the majority of Trump brand products are manufactured in China and other near slave labor markets around the world? Seriously, I have yet to see one of his branded items that was actually made here in the U.S.

We are going to Vietnam. A big plan is underway as we speak. 🙂

@St-Sinner U.S. companies are already in Vietnam. Have been for quite a while. Since as early as 1994, when Bill Clinton lifted Nixon's 1964 trade embargo to all of Vietnam. I worked in finance for one of the largest corporations in the world in the 1990s, and watched how quickly the move to Vietnam's cheap labor unfolded at my company. They wasted no time shifting lines (even in Mexico and Brazil) to Vietnam. That's how dirt cheap labor was over there at the time.

0

He is full of shit there...American investors that have stock in individual Chinese companies might not be affected but many mutual funds in corporate 401-K portfolios have Chinese corporations hidden within very common and widely popular mutual funds, especially in the emerging market area...Vanguard, American, Oppenheimer, T. Rowe, Fidelity, JP Morgan, Wells Fargo, etc. etc. Any of those sound familar? They are funds with a bit of higher risk but also higher returns and make up anywhere from 5-50% of many portfolios in that category...

Doing this to any international player in the American Stock market would affect millions of Americans, especially those retired or ready to retire..in addition, the retaliatory response from China could be to do the same to their stock market...bump our US companies like Nike, Apple, Starbucks...

.where is the link on his rationale and how he is basing his suggestion?

Sounds like a not well thought out knee jerk comment to me...

Let the private investors suffer. Government retirement funds are not allowed to be invested in off shore companies, funds or stock. They only do fixed income.

@St-Sinner So you would allow millions of Americans who have 401-k plans through their employer lose their funds? They are mostly blue collar and regular working people..

@St-Sinner What funds are you talking about? What government retirement accounts?

@thinktwice Yes because what Marc Cuban is suggesting will bring China to its knees. China does not care as much for the suffering of its consumers as much as it does about taking a hit to its businesses at large. The pain would be short lived and not prolonged as the Trump is giving Americans now.

@St-Sinner You need to post the link...the nuances and volatility of the stock market will not be beneficial to the USA...look how many years it took people to recover from the last drop in the market, the one Obama inherited...that was not short lived and many people of retirement age lost nearly everything...do you know how many billions of dollars of US companies are sitting in the Chinese market? It would cripple our country, not theirs...post the link...I must be missing something...

@thinktwice Just did = [finance.yahoo.com]

@St-Sinner He is throwing out talking points with no real back up to what he is saying...I think he better read all he can from economists and experts on the stock market...his understanding of it is superficial..wow...I am against the tariffs as well but he underestimates the ramifications of what that would do...China currently has much slower and stricter IPO launches than the USA...they will simply speed up the process and sell on their own markets, keeping all of the money in China...the drop in the DOW would be much greater...

International stocks will beat US stocks over next decade: Vanguard Group. The US stock market has produced annualized returns over 10 percent in recent years. ... International stocks will outperform domestic equities in the next decade.

@thinktwice I am not supporting Cuban, only reporting his alternative ideas. I am not analyzing.

@St-Sinner I know...I like your open ended style...think think think explode!!! ha ha ha

@thinktwice LOL, let others think and explode?

@St-Sinner I mean that I think we have forgotten how to think anymore...nothing challenges us...we see sound bites and snippets and accept them and react too quickly without delving into ourselves and thinking things through...I enjoy your posts because they have slowed down my personal reactions and made me more careful in my immediate response and have forced me to truly commit based on my own knowledge of the subject, my own research etc. I like it...it is like fireworks in my brain...

@thinktwice I agree, most go with natural human impulsive reactions.... Rage, rant, hate, reject or sudden love. We often ignore both sides of an issue. In this extreme capitalism, we know what impulse buying is. They know how we behave. That is why they created Valentine's day, mother's day, bosses day, secretary's day etc. We still rush to buy at high prices on the day before or the last day because we are prey to easy emotions.

@St-Sinner I have embraced minimalism to free myself of this...it has made me much more disciplined in my wallet as well as my brain...I purchase consummables of highest quality and necessities (and yes, $30 shampoo is a necessity...) ha

0

I'm generally distrustful of venture capitalists because I know how a bad one can kill a startup by demanding quick solutions to problems and due to their general lack of patience. I don't know the ramifications of what he is suggesting, or what net effect that would have on the economy as a whole.

This would definitely be damaging to Chinese companies in the short run because it would prevent them from raising capital as fast, slowing the growth of their businesses.

What it would do to both countries in the long run is debatable. It might force China to become more self reliant by eliminating their biggest intake of foreign investment, and thus make them even more powerful than before, but it could also have the opposite effect if their growth is as dependent on foreign investment as Mark Cuban seems to believe.

0

Cuban is a MUCH better businessman than 45, which makes 45 crazy.
His ideas for how to deal with China are FAR better than 45's.
That's why they won't be implemented.
45 is a petty little man.

2

And if China calls in what it holds of USA debt........?

1

I trust what Mark Cuban says. He's been a successful businessman for many years.

Just hold on... Isn't that what voters believed when they voted for Donald J Trump in 2016?

@St-Sinner I forgot to add the word, "here" in my original comment.

Ok, but is he a man who pays his employees a wage where they can afford to pay their rents without having to get a second job?

@St-Sinner Only the stupid ones believed that bullshit.

@KKGator But he became president, right? Or Hillary just threw in the towel?

@St-Sinner Stupid people voted for 45. They got conned.
It doesn't have fuckall to do with Clinton.

@Jolanta He is a venture capitalist, not a business manager. He invests in companies that then give him a return on that investment if they make a profit. Although he has a say in the way the companies are run, typically by choosing who is on the board by having a majority of the stock in that company that was purchased through that investment, he doesn't directly make the business decisions like who to hire or how much to pay them. Those decisions are left to individual companies.

@Happy_Killbot He is a venture capitalist now. He made his fortunes as a businessman before.

@St-Sinner Hilary won the popular vote. The electoral college screwed the US again.

@CommonHuman Hillary lost. She is New York, not in the Oval Office.

really, he got lucky with a hi tech IPO & made his fortune.

@Happy_Killbot I am sure that if he wanted to do the right by all he would be able to, but then he probably is one of those “venture” capitalists that only cares about how much money he makes.

3

Cuban is much more a true business man than tRump. He didn't lose 1.5 billion in 10 years. And the tariffs only hurt consumers and producers. Somehow, I believe, trumps money folks are finding a way to profit.

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