It’s sometimes hilarious just how mind boggling stupid American politicians and the public are.
The people suggesting this idiocy seems to not understand how stock markets works at the most basic level. Or they know how things works and this is about trying to force full decoupling, which is in itself prizing winningly retarded for America to do.
When a company lists on a stock market, you give it your hard earned cash for a part of the company in the form of shares. They already have your money and all you have are glorified IOUs from them.
What happens when the American government forcibly delists Chinese companies? Those IOU shares now cannot be traded and are worthless.
It seems these idiots are somehow conflating what they are suggesting with voluntary delisting when public companies are made private. Because that is a choice, and usually as a result of a takeover by Private Equity or a bigger company, shareholders usually get a nice premium added on top of the share price for their shares to compensate them for the company choosing to go private.
But if the US government passes a law to force a Chinese company to delist, why the fuck does the Chinese company need to pay a penny to the American shareholders?
You can bake in a clause in your law to mandate the Chinese company to pay the shareholders, but if you have pushed things that far, why the fuck would any Chinese company comply with such a law? They can and will say, ‘fuck you very much’ and effectively exist the US market, which is the most the US can hope to achieve with such a law. And unless these Chinese companies are run by a bunch of total certifiable morons, they will see this coming a mile off and extract basically all assets they can from the US before the law comes into force, so there won’t even be a tiny fraction of the value of the shares in physical and financial assets within US jurisdiction for them to seize. And if America tries to seize Chinese companies’ assets in America, that’s opening a whole new can of whoopass for themselves.
As with tariffs, it will be the American people who ends up getting fucked the most by this, since they will have the double whammy of loosing their shares as well as Chinese companies pulling out of the U.S. market so they have less choice, which inevitably leads to further price gouging by American companies. That would be the actual goal of this law, on top of trying to force a total and hard decoupling by the backdoor.
