So this crusade is continuing but
I wonder what China's policy response should be? If the US & vassals decide to restrict out-bound investment into China, should China respond by forcing the existing Western share holders in these sectors to divest on the cheap? It'd be a great opportunity to stop the flow of profits to Western investors and keep them in Chinese hands.
Laugh in economics?
The idiocy behind such a suggestion is frankly staggering, but entirely in keeping with the relentlessly self-centred, baselessly egotistical sense of entitlement that current western politicians seems to pride themselves on.
It’s basically stupid spoilt rich brat syndrome, where people who did nothing to earn the wealth and power they inherited from their betters only thinks to flaunt that wealth and power by pissing it away like it’s going out of fashion while treating arrogance and ignorance as virtues to be proud of. But not only are these stupid spoilt rich brat western politicians behaving like stupid spoilt rich brats themselves, they are making their respective countries behave like stupid spoilt rich brats as well.
Investment isn’t charity. American companies are not lining up to invest in China out of the goodness of their hearts. They invest in China because they see those Chinese companies as winners, and they make massive profits on those investments.
This is why it’s extra hard for anyone to catch up to America, because it isn’t a fair race. As the up and coming challenger, not only do you have to run faster than the Americans, you have to do so while half carrying your American competitor. Because as Chinese companies grow, the American companies that invested in their also see their profits grow off of the hard work of the Chinese companies they invest in.
The Chinese companies who are worth investing in will find investors who like profits. It’s American companies who will be fucked the most by such bans since they will not be allowed to invest in the best companies with the best returns. Indeed, they might have to invest in direct competitors to the Chinese winners they would have chosen if given the choice, and those Chinese winners will probably end up eating the lunch of the non-Chinese companies the Americans invested in, so not only no profits, but potentially capital losses.
So the Chinese response will be to not interrupt their opponents when they are making mistakes. China might even complain real hard like they are scared of such a ban just to help it over the line if needed.