Program: Cavuto Coast to Coast
Station: Fox News Channel
DAVID ASMAN: Well, meanwhile, Beijing’s crackdown on US listed stocks is fueling a record drop in those stocks. Let’s bring back Scott Martin. Susan Lee and John Lonski. Good to see you all. Susan, what is going on in China right now? I mean, President Xi is a communist, even though he’s allowed you know, he sits where he does because of the sort of free market pushes of his predecessors. Is he going back to the old a stricter communist model of dealing with the economy?
SUSAN LI: Well, if you ever go to China, you’ll see it’s actually a very capitalist society. People there just want to make money and make their lives better. But there’s a lot of debate in terms of what exactly is a long term goal of Beijing and Xi Jinping and the Communist Party. Because really, when you’re clamping down on big technology like they have been in the last few months, you’re really cutting off your nose to spite your own face. Right. So what is a long term goal? Is it just domination, control over data, over the economy, over the markets? Or do you want your home grown talent to make lives better for the billion people that live in the country? I think there’s a lot of debate about that. But I will say that Bitcoin has actually benefited from this clampdown. A lot of money has been taken out of these Chinese stocks and worse two day wipeout since, two thousand eight. That money has gone into other assets, speculative assets like Bitcoin, John.
ASMAN: So far, the Bush administration hasn’t really changed that much. The policy of the Trump administration, one of those rare things where it hasn’t undone the good stuff that his predecessor did. But do you think that will last or do you think we may have sort of relations with China that perhaps a lot of people would would would voice their opinions against?
JOHN LONSKI: Well, I think the Biden administration will continue to take a critical view of what is taking place in China with the intentions might be they will be very wary of attempts by Chinese companies to purchase U.S. companies. And Susan, I think put it quite well. The Chinese government appears to be shooting itself in the foot. I mean, they have a very creative, innovative, highly educated population that could do wonders at creating wealth for China. And yet they seem to be putting limits on the ability of the Chinese economy to grow. And this brings up an important point. You know, years ago, the 1950s, high ranking U.S. academics, Paul Samuelson made the argument that the Soviet Union would surpass the US economic never came close to happening now. And the more you try to stifle initiative in an economy, the less likely is the economy to reach its full potential.
ASMAN: Well, Scott, on the other hand, you see all those people there at one point, four billion of them, and companies like Coca-Cola and the others at Nike that have their their fingers all over the place are willing to forgive all of the problems that China has. They’re willing to kowtow to the Chinese Communist Party to to maintain their market share in China. But and this is a very important but that I want you to deal with. You have the issue of the pandemic. We will not forget where the pandemic came from. We will not forget the way they unleashed it by allowing the people from move to travel to Europe and to travel to us and infect the rest of the world and perhaps perhaps having invented it inside a lab. Won’t there be repercussions from that that will affect economically our relations with China?
SCOTT MARTIN: Well, there should be, David. I mean, I’m waiting for the administration every day to do something about what happened in the Wuhan lab a little over a year ago. And certainly if you look going forward and based on history, you can’t trust China, whether it’s economically, whether it’s medically. We don’t have a friend there, obviously. And if you look at back, you know, earlier this month, they had the hundred year celebration, I guess it was, of the CCP, which was highly their militaristic. It was highly affronted to the rest of the world as some of the comments that President Xi made versus the other rest of the world leaders and rest of the world countries about what the Chinese government was going to do to people. And so, look, going forward, if we think we’ve got a friend in China, we’re sorely mistaken and it’s already costing them internally. Yes, a lot of money as far as how they’re clamping down on their own, their own companies, but also what it’s doing to some of our companies that are trying to get in there and do business
ASMAN: Susan,John Scott, what a great panel. Thank you all for being here. Appreciate it. Well, it’s one of the.