US to ban transactions with ByteDance and WeChat in 45 days
Some people here are wondering about the implications of this. What this means IMO is that all Chinese investments in SV need to be liquidated at fire sale prices in the next 45 days. Regardless of how people here feel about China this is a huge escalation. The US is inflicting huge losses on Chinese companies for no clear violation of US laws on their part. The pandoras box is now open.<p>Do countries get to do this to each other whenever they feel like it now ? Can China force Tesla to sell its Chinese operations because Teslas data gathering poses a national security risk ? China has some pretty serious means available to it for escalation. China can ban Boeing from China forcing the US taxpayer to incur serious losses in keeping the company afloat.<p>The whole thing is pretty stupid overall. Most people don&#x27;t realize that during the 2008 crisis it was Chinas 500 billion dollar stimulus that kick started demand and pulled the world out of a depression. China and the US are interdependent and hold up the global system upon which global growth depends. If China slows down as a result of all this that reduces global growth. Pushing China to the wall can make them take extreme steps like undercut the entire dollar based financial order leading to mass instability. The US might come out victorious anyway but its not worth the risks. Not to mention a war which if it breaks out could lead to WW3.<p>Previous attempts to contain China were much more tactful with things like the TPP and the Iran deal. Right now the world is hurtling towards the abyss and most people here don&#x27;t even realise it.<p>A meta point I&#x27;d like to add is that currently 10 % of the earths population in the &quot;Westosphere&quot; controls 60 % of the worlds wealth. This is untenable in the long term and all this flailing about will not stop a reversion to a more balanced world. Its better that this happen gracefully than in a violent fashion.