{"id":1696690,"date":"2022-10-16T06:30:05","date_gmt":"2022-10-16T10:30:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1696690"},"modified":"2022-10-16T16:36:18","modified_gmt":"2022-10-16T20:36:18","slug":"stephen-w-mosher-what-warren-buffet-bailing-on-chinese-economy-signifies-as-tensions-rise","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stephen-w-mosher-what-warren-buffet-bailing-on-chinese-economy-signifies-as-tensions-rise\/","title":{"rendered":"Stephen W. Mosher: What Warren Buffet Bailing on Chinese Economy Signifies as Tensions Rise"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstephen-w-mosher-what-warren-buffet-bailing-on-chinese-economy-signifies-as-tensions-rise%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1696690&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>It was with\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/BL-CJB-10918\" target=\"_blank\" rel=\"noreferrer noopener\">great fanfare<\/a>\u00a0that Warren Buffet\u00a0<a href=\"https:\/\/www.nytimes.com\/2008\/09\/29\/business\/worldbusiness\/29iht-byd.1.16552851.html\" target=\"_blank\" rel=\"noreferrer noopener\">paid out<\/a>\u00a0$230 million for a 10 percent stake in Tesla rival BYD.\u00a0\u00a0He had been to the future, and it was China.<\/p>\n<p>Now, 14 years after his initial investment in China\u2019s premier manufacturer of electric vehicles, Buffett is quietly\u00a0<a href=\"https:\/\/gulfnews.com\/business\/how-warren-buffett-turned-230-million-into-8-billion-with-byd-1.1662169902485\" target=\"_blank\" rel=\"noreferrer noopener\">pulling the plug<\/a>\u00a0on this and his\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-08\/legendary-china-bets-unwind-as-buffett-softbank-naspers-sell\" target=\"_blank\" rel=\"noreferrer noopener\">other China plays<\/a>.\u00a0\u00a0It is worth asking why.\u00a0\u00a0<\/p>\n<p>After all, this is the same man who parlayed a small investment into a failing New England textile company called Berkshire Hathaway nearly 70 years ago into a fortune now worth close to 100 billion dollars.\u00a0\u00a0If Buffett is ditching China, it means that, in his view, the risk\/reward ratio has tilted decisively into the red.\u00a0\u00a0<\/p>\n<p>Here\u2019s my take on what I think the aptly named Oracle of Omaha is thinking.<\/p>\n<p>In a few days, the 20th Congress of the Chinese Communist Party (CCP) will open.\u00a0\u00a0Party leader Xi\u00a0Jinping will be supposedly \u201celected\u201d to a third\u00a0five-year\u00a0term, but in reality he will really be locking down his control of China for life.\u00a0\u00a0<\/p>\n<p> <a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/warren-buffett2.jpg\"><\/a>Buffet, who\u2019s worth nearly $100 billion, paid $230 million for a 10% stake in BYD almost 15 years ago. AP <a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/bill-gates-warren-buffett.jpg\"><\/a>Buffett and Bill Gates take the stage to salute BYD in Beijing in 2010; Buffet\u2019s initial investment is now worth some $7.5 billion. AP <\/p>\n<p>The 70-year-old dictator is, like the late Chairman Mao whom he greatly admires, a radical Communist ideologue. This means his decade-long drive to\u00a0<a href=\"https:\/\/freedomhouse.org\/article\/china-xi-jinpings-third-term-will-mean-dwindling-freedom-14-billion-people\" target=\"_blank\" rel=\"noreferrer noopener\">concentrate all power<\/a>\u00a0in the hands of the state\u2014which is to say<em> his<\/em> hands\u2013will not only continue, but accelerate.\u00a0\u00a0China\u2019s hugely successful private sector will be bled dry, and the\u00a0<a href=\"https:\/\/nypost.com\/2021\/09\/11\/how-whitney-duan-became-chinas-richest-woman-then-vanished\/\" target=\"_blank\" rel=\"noreferrer noopener\">deadly assault<\/a>\u00a0on the most productive members of society\u2014people like Alibaba-founder Jack Ma\u2013will continue.<\/p>\n<p>So will Xi\u2019s insane Covid-Zero policy.<\/p>\n<p>After the likely Wuhan lab leak, Xi announced that he was personally overseeing the pandemic response.\u00a0\u00a0And the policy that he settled upon to stop the spread of the coronavirus was to lock down entire cities, even provinces.<\/p>\n<p> <a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/xi-jinping.jpg\"><\/a>Chinese leader Xi\u00a0Jinping is set to further consolidate his hold over every element of Chinese finance and politics during the upcoming 20th Congress of the Chinese Communist Party.REUTERS <\/p>\n<p>Because the lockdowns are so closely identified with Xi himself, no one in China has dared to criticize this fruitless effort to\u00a0<a href=\"https:\/\/nypost.com\/2022\/04\/09\/how-china-brutalizes-its-people-to-try-to-achieve-covid-zero\/\" target=\"_blank\" rel=\"noreferrer noopener\">stamp out<\/a>\u00a0the coronavirus, even as it continues to wreak havoc in the economy.\u00a0\u00a0Indeed, the immediate imposition of a rigid lockdown as soon as a handful of cases of Covid are detected has become almost a kind of loyalty test for Communist officials, a pledge of allegiance to the new Chinese emperor.\u00a0\u00a0\u00a0\u00a0<\/p>\n<p>Worse yet for China\u2019s economic prospects, a\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-10-11\/china-party-paper-praises-covid-zero-again-dashing-easing-hopes\" target=\"_blank\" rel=\"noreferrer noopener\">new series of articles<\/a>\u00a0in the\u00a0<em>People\u2019s Daily<\/em>\u00a0suggests that the deadly lockdowns, which arguably kill more people than Covid, will continue for several more years.\u00a0\u00a0The official press has been at pains to\u00a0<a href=\"https:\/\/www.globaltimes.cn\/page\/202210\/1277038.shtml\" target=\"_blank\" rel=\"noreferrer noopener\">stress the correctness<\/a>\u00a0of the Chinese response, even as every other country on the planet has abandoned it.<\/p>\n<p> <a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/10\/chengdu-sichuan-province-china.jpg\"><\/a>Under Ji\u2019s watch, China remains the only major nation still in lockdown, a move that is stifling the economy and further eroding civil rights. STRINGER\/EPA-EFE\/Shutterstock <\/p>\n<p>It is largely because of these two \u201cC\u201ds\u2014Communism and<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It was with\u00a0great fanfare\u00a0that Warren Buffet\u00a0paid out\u00a0$230 million for a 10 percent stake in Tesla rival BYD.\u00a0\u00a0He had been to the future, and it was China. Now, 14 years after his initial investment in China\u2019s premier manufacturer of electric vehicles, Buffett is quietly\u00a0pulling the plug\u00a0on this and his\u00a0other China plays.\u00a0\u00a0It is worth asking why.\u00a0\u00a0 After &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1696692,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1696690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1696690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1696690"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1696690\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1696692"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1696690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1696690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1696690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}