Home Video Kyle Bass: China Infiltrated Global Institutions To Further Belt And Road, “Their...

Kyle Bass: China Infiltrated Global Institutions To Further Belt And Road, “Their Plan Is Easy To See”

49
0

Kyle Bass, Founder and CIO of the hedge fund Hayman Capital Management joined CNBC on Friday to discuss tensions between the U.S. and China. Bass said Chinese companies should not be allowed to do business in the United States due to human rights abuses. He called the communist country a paper tiger that is only as strong as the West says they are. Bass added the West holds all the cards because China’s economy depends on the U.S. dollar as no one takes the yuan seriously. “I believe Chinese economics as somewhat of a paper tiger,” Bass said. “They claim to be 15% of global GDP and yet less than 1% of global cross border transactions settle in their own currency.” “They have a closed capital account,” he continued. “No one takes their currency as legal tender. And so China’s only as strong as the West says they are. And so it’s my view that the west holds all the cards here and what we need to do is get China to play by the global rules. They dance to the beat of their own drum and they don’t care about laws. They don’t care about lying. They don’t care about cheating about stealing. Anything to move the Chinese agenda forward. That’s their plan. And so if we start enforcing our laws against them and they start playing by the global rules then I’m okay with fair trade. I’m not okay with the manner in which the Chinese Communist Party operates today in many different ways.” Bass admonished CNBC for not bringing up China’s concentration camp program for the religious and also hit Wall Street for engaging with such a “murderous regime.” He said people ask why care about it now, while he questions why the U.S. ever did business with the communist regime in the first place. “They earn profits on that theft so I just don’t understand why we interface with a strategic competitor or an enemy like we do,” he said. “One thing that’s not brought up on CNBC often is they got over a million prisoners of conscious in concentration camps just for their religious preference,” Bass said. “I thought we went to never again after World War II why does the U.S. and why does Wall Street engage with such a murderous regime? I actually don’t understand why. You guys are saying why now? Or is it a good idea why? I don’t know why we ever did in the first place.” Bass said consumer demand for Chinese products and their success ingratiating in global institutions like the World Bank and W.H.O. has given the country U.S. dollars to fund their Belt and Road Initiative and plans for 2025 and 2050. “We have to keep funding them with dollars,” Bass said. “They have infiltrated supernational institutions like the World Bank, the African Development Bank and even the W.H.O. which we’ve seen in the last few months and everything they do is in an effort to get all of these institutions to pay dollars to Chinese Belt and Road loans. When you look at the Chinese grand strategy and you look at their plans for 2025 and 2050. If you look at Secretary Xi’s speech from the last party Congress in 2017, their plan is easy to see.” “It’s just we on Wall Street and we in the United States, we can’t wait to chase 1.4 billion consumers and somehow figure out how to sell them things when in the end, I think all they do is enrich few people in the United States and they repress and suppress their own people and don’t live by global standards,” he said. “I just don’t understand why we even interface with them given all of the inputs and the facts that we now know today.”

KYLE BASS: They need to start adhering to our laws and we need to bring our rule of law to them for all the global infractions they’ve engaged in. I’m actually flabbergasted that the U.S. Department of Justice hasn’t brought a FTPA case against either one of these companies. I imagine we still can. I think if you just look at the facts, Wilfred, these companies shouldn’t be allowed to do business in the United States, period… From my perspective, maybe I look at this too simplistically, if most big Wall Street economists say if we completely decoupled and separated from China, it would cause a 2.5 to 3% of GDP hit on the United States and the way that I look at China is they steal 2 to 3% of GDP and intellectual property from our companies every year according to the U.S. Defense Department and the White House. And so and they earn profits on that theft so I just don’t understand why we interface with a strategic competitor or an enemy like we do. One thing that’s not brought up on CNBC often is they got over a million prisoners of conscious in concentration camps just for their religious preference. I thought we went to never again after World War II why does the U.S. and why does Wall Street engage with such a murderous regime? I actually don’t understand why. You guys are saying why now? Or is it a good idea why? I don’t know why we ever did in the first place. WILFRED FROST, CNBC: What, Kyle, do you think the likely reaction is going to be from China if things continue to amp up and this time, there’s no Phase One deal that takes the kind of heat out of the room? Where do we end up in six months or five years? I mean I’m going to put the word out there. Is it possible this goes to the military level or not? BASS: Well, look, I think there are four different wars that can be fought with China. We’re already in the midst of three of them and the only one we haven’t been fighting is a kinetic war. I believe Chinese economics as somewhat of a paper tiger. They claim to be 15% of global GDP and yet less than 1% of global cross border transactions settle in their own currency. They have a closed capital account. No one takes their currency as legal tender. And so China’s only as strong as the West says they are. And so it’s my view that the west holds all the cards here and what we need to do is get China to play by the global rules. They dance to the beat of their own drum and they don’t care about laws. They don’t care about lying. They don’t care about cheating about stealing. Anything to move the Chinese agenda forward. That’s their plan. And so if we start enforcing our laws against them and they start playing by the global rules then I’m okay with fair trade. I’m not okay with the manner in which the Chinese Communist Party operates today in many different ways. SARA EISEN, CNBC: The problem with what you’re saying Kyle, is it’s too late. Talk to Apple, talk to Proctor & Gamble, talk to Coca-Cola. These are companies with a huge presence and business and have long operated in China, rely on it for growth. There is a global supply chain. Yes, we can move critical medical supplies back here, which would be great and there’s a huge awareness of that post-pandemic, but this is already a globally interconnected economy that relies on China for growth. Are you denying that? BASS: Are you telling me — I guess are you saying there’s nowhere else around the world that can manufacture cheap iPhones or cheap t-shirts or electronics? I mean, look at the rest of southeast Asia EISEN: No, I’m sure there are even cheaper places than China but it’s also a consumer demand story as well. BASS: Yeah but they have to pay dollars for it, right? We have to keep funding them with dollars. Like, they have, they have come at us in so many different ways. They have infiltrated supernational institutions like the World Bank, the African Development Bank and even the W.H.O. which we’ve seen in the last few months and everything they do is in an effort to get all of these institutions to pay dollars to Chinese Belt and Road loans. When you look at the Chinese grand strategy and you look at their plans for 2025 and 2050. If you look at Secretary Xi’s speech from the last party Congress in 2017, their plan is easy to see. It’s just we on Wall Street and we in the United States, we can’t wait to chase 1.4 billion consumers and somehow figure out how to sell them things when in the end, I think all they do is enrich few people in the United States and they repress and suppress their own people and don’t live by global standards. I just don’t understand why we even interface with them given all of the inputs and the facts that we now know today.

Be irresistible couple