Comments by "Louis Giokas" (@louisgiokas2206) on "China’s No.1 Real Estate Company in Crisis, 900K Units Left to Rot u0026 Trillions in Debt" video.

  1. While there has been a lot of foreign investment in China, you can't just add up all the past investments. This investment has been primarily in industrial plant. Much of that has returned profit already. A lot of it is lower tech. Look at Apple's plants (actually owned by someone else). These plants are labor intensive, thus easier to relocate. The actual added value of assembly in China is a tiny fraction of the cost of an iPhone, for example. Many companies have been relocating outside of China, including many Chinese firms. These companies are not going under. Many do quite well after relocation. Companies are complex organizations and are adaptable. Look at what happened in Russia with the sanctions. Many of the companies lost all of their investment in Russia. These companies did not go under, even though some had massive investments. The ones that will hurt are those investing in purely financial instruments such as stocks and bonds. This is a small amount of the total investment in China. Fortunately for me my financial advisor will not invest in funds that include direct investments in China. Another thing to understand is that China does not generally allow foreign majority ownership in enterprises in China. This will come back to haunt them. The conclusion is that a crash in China will not be as impactful as many believe due to the semi-closed nature of the CCP's policies.
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