What Jim Chanos Is Telling His Clients About China Right Now see more insight from Linette Lopez of Business Insider
A few points Jim Chanos hit:
- Chinese President Xi Jinping has been a more repressive, inward-looking leader than anyone expected. He has taken “steps backward” from the reform the world expected by moving against the army, the media, and the internet (which he sees as an alternate power base) in general.
- “We’re getting in some pretty scary debt to capital numbers in China,” Chanos reminded listeners. “We’re 300% of GDP as opposed to 100% of GDP the last time they had a big problem.”
- Countries that depend on China for trade represent 40% of global gross domestic product. “So if China really does go into decline, it’s going to take a lot of countries down with it,” Chanos said.
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