Just got off the phone with one of the American CEOs who went to the China Development Forum (CDF) this week and met with Xi Jinping on Wednesday in China. Speaking on condition of anonymity, he said "Business is still terrible," and confidence in the economy is very low. 1/9
After spending nearly a week there speaking with the leadership and members of the business community, this CEO said there was no indication the country is is backing away from centralizing the economy. 2/9
He said wealthy Chinese are fearful and selling items that are seen as ostentatious, such as private jets, "because its dangerous to be rich in China." He added that they are trying to get their money out of the country. 3/9
As for the CDF, there was very little reference to climate change, renewables, or decarbonization. This CEO said there were passing references to the private sector, but the focus always returned to support of the large, state-owned enterprises which dominate the economy. 4/9
The CEO told me the meeting with Xi lasted 1.5 hours; that Xi was asked tough questions by the CEOs and that Xi gave tough answers.
He says in that meeting, Xi stressed the following:
-that China's economy hasn't peaked 5/9
He says in that meeting, Xi stressed the following:
-that China's economy hasn't peaked 5/9
-every economy has difficulties and they have the capacity to address theirs
-said repeatedly they know how to fix their economy, that everyone has an idea about how to fix their problems but that they know how to fix their problems
6/9
-said repeatedly they know how to fix their economy, that everyone has an idea about how to fix their problems but that they know how to fix their problems
6/9
-they know they have to provide at least 10 million new jobs every year to new graduates
-on semiconductors, that its not right for the US to try and constrain China's economy
-that China is not a threat to the United States
7/9
-on semiconductors, that its not right for the US to try and constrain China's economy
-that China is not a threat to the United States
7/9
-that the US should not try to hinder China's growth
-Taiwan is a red line and that China doesn't interfere with other countries' borders, so other countries shouldn't try to interfere with theirs
-that nuclear war would destroy humanity and we should never go there
8/9
-Taiwan is a red line and that China doesn't interfere with other countries' borders, so other countries shouldn't try to interfere with theirs
-that nuclear war would destroy humanity and we should never go there
8/9
-Thucydides trap is not inevitable and has to be avoided at all costs
-the governing system of China is not going to change
-They respect other forms of government, they ask respect for theirs.
9/9
-the governing system of China is not going to change
-They respect other forms of government, they ask respect for theirs.
9/9
Spoke about this on @SquawkCNBC on @CNBC this morning with @BeckyQuick @JoeSquawk .
https://x.com/SquawkCNBC/status/1773321981972136190?s=20
@SquawkCNBC @CNBC @BeckyQuick @JoeSquawk Entire segment here: cnbc.com/video/2024/03/…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
