Kevin O’Leary shares a bold prediction about President Trump’s imminent economic strike on China, anticipated to markedly disrupt the global market. It centres around the recent Senate confirmation of Paul Atkins as the head of the SEC, who is expected to enforce stricter regulations on Chinese companies in the US stock exchanges. This could lead to significant ramifications, including removal from the exchanges if they continue their non-compliance with American financial laws.
Currently, China has heightened tariffs on US goods to 125%, responding to Trump’s tariffs which start at a staggering 145%. This aggressive economic manoeuvre signals a broader strategy aimed at holding China accountable, something previous administrations have struggled to achieve. Trump is determined to compel China to respect World Trade Organization rules that they have often flouted since joining in 2001.
Small American businesses have long suffered as Chinese competitors continuously copy products, undermining their sales by offering cheaper alternatives. This practice, a violation of international trade rules, has persisted without consequence, creating an uneven playing field. American firms face severe challenges if they attempt to claim injustice against Chinese firms, which can litigate in American courts while the opposite is not true.
Trump’s current approach combines tariff strategies and SEC threats to demand behavioural change from China’s leadership. O’Leary points out that citizens are often distracted by media noise rather than focusing on the significant trading signals emanating from the White House, which seeks to negotiate zero tariffs and align China with global standards.
O’Leary envisions a future trade agreement that includes Eastern Europe, Canada, and Mexico, cultivating a thriving free trade economy promoting democratic values and lawfulness. He experienced overwhelming crowds in D.C. during his recent testimony about Chinese economic exploitation at a congressional committee, marking a stark contrast with the absence of Chinese representatives at the talks.
Ultimately, if China intends to partake in negotiations, they must adhere to fair trading practices, adhering to the established rules of engagement.
Kevin O’Leary predicts a drastic economic disruption from President Trump aimed at China, following the appointment of Paul Atkins to lead the SEC. This may lead to a crackdown on Chinese firms in the US markets. Current escalating tariffs further signal a strong US strategy to hold China accountable for trade violations. O’Leary expresses optimism for a united front in free trade agreements that support democracy and order, contingent on China’s willingness to reform.
O’Leary’s insights illustrate the shifting landscape of US-China relations, driven by Trump’s strategic tariff manoeuvres and a tougher stance from the SEC. Chinese companies may face tough repercussions if they ignore US regulations, while small American businesses continue to struggle under the weight of unfair competition. The call for a united front with international allies presents a hopeful path towards establishing a more equitable trading environment, presuming China is willing to comply with global norms.
Original Source: www.dailymail.co.uk
