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by Temporary_31337 1114 days ago
Also by the time US loses its privileged position it will already be too late to reinvest elsewhere without losses. So many funds are already moving money to China and elsewhere. Having said that China etc have their own economic and demographic problems so nowhere seems safe at the moment.
3 comments

> So many funds are already moving money to China and elsewhere.

Good luck to those investors. China has no established tradition of respecting property rights. It can change the rules of the game as it sees fit politically.

The only way to make it workable is to have some critical trading relationship that makes the cost of seizing property/money unpalatable.

> China has no established tradition of respecting property rights.

https://en.wikipedia.org/wiki/Civil_forfeiture_in_the_United...

and that's against their own citizens.

Are we really doing this?

https://en.m.wikipedia.org/wiki/Land_Reform_Movement_(China)

Landlords — had their land confiscated and they were subjected to mass killing by the CCP and former tenants, with the estimated death toll ranging from hundreds of thousands to millions.

You can fight civil forfeiture and not risk having your family sent to a work camp in the US.

It’s also politically very unpalatable to use it on businesses. Use it on a business and good luck getting re-elected as a prosecutor / police chief etc.

Is it used to suppress poor brown people? Sure. Is that a good thing? No. But it’s not really a barrier to investment.

Investing in China seems terribly risky to me.

China's been telegraphing it will attack Taiwan pretty soon. When that happens, good luck not having your investments either destroyed or nationalized.

I think war or no war those possibilities are a major risk with China given their form of government.
Not to mention their rapidly aging population. People forget: growth and economic power comes from demographics. China got old too fast. India and Africa are the remaining global youth, and I’m unsure there is appetite to invest in either market.
"So many funds are already moving money to China"

No they aren't.