[Stocks, FX] China investment is gambling

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Recently, Russia’s invasion of Ukraine has become the top news in the world. Russia’s ruble, which is sanctioned by the world, continues to plunge, increasing the possibility that Russia, which is completely isolated from the world, will collapse. However, there are countries that are backing up from the shadows, although they do not say that Russia in a loud voice. It’s China. China, like Russia, could be locked out of the global economy in the future, and investment in the China could be gambling.

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No Russian sanctions

Chinese dictator Xi Jinping is reluctant to sanction Russia. We do not impose Russian sanctions on the pretext that sanctioning Russia will hurt the world’s finances, energy and transportation. It is facing the opposite direction in all the countries of the world, and is attracting attention in the future. A blatant statement of support for Russia would in turn push China out of the global economy, just like Russia, and could cause the yuan and stocks of Chinese companies to plummet.

Be wary of America

China’s invasion of the world is ongoing and is wary of the United States as it does not impose sanctions on Russia. Already as of March 2022, U.S. Secretary of Commerce Lemond warned Chinese companies that violated U.S. export restrictions to Russia could stop supplying U.S.-made equipment and software needed to manufacture their products. doing. It is already in a state of warning as it has not participated in recent Russian sanctions and there are moves in China to help Russia.

China invades foreign countries

China continues to invade omnidirectional countries. It continues to invade Japan, Taiwan, Vietnam, the Philippines, India, etc., and if the war actually begins, it will be immediately locked out of the world economy. The Chinese economy will collapse. The United States has a fleet in the Pacific Ocean and is always ready for emergencies. Therefore, the United States cannot send troops to Ukraine.

Debt-trap diplomacy

Debt-trap diplomacy refers to the state in which the policies and diplomacy of debtor countries and international organizations are tangibly and intangibly bound by debtors in the name of international assistance. The Chinese Communist Party has increased its international loan aid and made huge investments in developing countries, but all of Ethiopia, Venezuela, Sri Lanka, Pakistan, Tajikistan, etc. are suffering from huge debt, weakening the Chinese Communist Party. It is in a state of being grasped. Due to this situation, more and more countries are considering China as a problem.

Decoupling

Currently, economic separation from China is progressing, led by Europe and the United States. Separation from China, which began during the Trump administration in the United States, has progressed, and thorough sanctions have been imposed on the oppression of genocide in Tibet and Uighur. There is also a diplomatic boycott at the 2022 Olympics. The Chinese economy is clearly beginning to fade, and the world is beginning to lean towards separation from China.

China full of bombs

As mentioned above, it can be said that China has a big bomb from various aspects. Investing in China, not just stocks and Forex, is a complete gambling and not a good idea. Because you don’t know when and where it will explode and you will lose a lot.

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