“This will not end well.”
For China.
This is a repeat of the japanese story in the 90s, when Japan had so many dollars due to their trade surplus, they were buying stuff left and right in the US at inflated prices (including the Rockefeller Center). They took a bath in most of those deals.
The difference is, the Chinese government doesn’t care if they sacrifice their companies, their goal is to undermine their enemies.
You are correct. This is a currency based trend. The Yuan is expected to lose value against the dollar over the next few years. So if the Chinese buy a dollar producing asset now, it will only get more valuable as the Yuan falls.
Thank you for that. I guess most here don’t remember the Japan buying freak out.
Only thing I would add is the strong dollar helps the Americans who are getting a paid now.Good time to sell.
The business tide goes in and out during every30-35 years;America will be back up on top in a few years.