Jim Cramer repeated the sentiment shared by many of Wall Street’s elites in today’s edition of Mad Money, which is to bring an end to tensions with China over the coronavirus. The reconciliation the elites are seeking is not based from a position of integrity, but rather greed.
We are a capitalist nation, but not at any expense. Certainly, not at the expense of our long term national security and the well-being of our citizens. Cramer correctly outlined the growing number of multinational technology companies, with large footprints in China, that will be impacted.
It’s a small price to pay now, but taking decisive action against China will set us up for a more secure economic and political future. The first action has already taken place: the passing of yesterday’s Senate Bill, the Holding Foreign Companies Accountable Act, will accelerate the delisting of major Chinese companies from American based exchanges. These companies currently hold a total market capitalization of about $1.2 trillion dollars.
The President doubled down on his strategy today in a tweet addressing China’s national spokesperson:
The coronavirus alone would be enough, in my view, would be enough to take a hard line on China. Considering the deceitful business practices over many decades now makes taking action a no brainer. Aside from stealing American technology, and pushing unfair trade practices, the recent Luckin Coffee fraud demonstrates the need to radically change our strategy beyond just providing more oversight.
The delistings will cause major financial losses for Wall Street’s elites. Although they are major donors to the Democrat Party, the radical liberals are in no position to challenge economic actions taken against China.