President Trump will stock Nuke Alibaba if it comes to that

<p>In September last year, a Reuters report stated that President Donald Trump was considering the idea of ​​delisting Chinese companies, such as Alibaba (NYSE: BABA) from US stock exchanges. Keep in mind that this was before the United States and China signed a Phase 1 trade agreement. Furthermore, it turned out that Alibaba’s stocks absorbed a short but sharp decline in the news.

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At the time, the process of delisting shares from opposing countries seemed at best unclear and at worst ridiculous. Of course, none of the idea came up. But in principle some valid points supported the case of delisting. Reuters contribution Alexandra Alper and David Lawder wrote:

In June, US lawmakers from both parties introduced a bill to force Chinese companies listed on US stock exchanges to submit to statutory supervision, including providing access to audits or delisting.

Chinese authorities have long been reluctant to allow overseas regulators to inspect local accounting firms – including member companies of the four major accounting networks – with reference to national security concerns.

But with both economies suffering from the hot trade war and an election year coming for Trump, the two nations are setting aside their differences. Of course, Alibaba stock soared from thawing tensions. But the latest development of coronavirus from China is likely to end its remarkable rally.

In my opinion, Chinese companies, from Tencent (OTCMKTS: TCEHY) to JD.com (NASDAQ: JD) to Nine (NYSE: NIO) and many others, are in serious trouble. Yes, of course, the coronavirus causes problems, not only in China but for the global economy.

More critically, however, I believe that unresolved tensions between the United States and China will come to the fore. If they do, the delisting proposal will not be a joke issue.

Alibaba Stock is the face of a new threat

Back in World War II, the US government encouraged people to save resources with a simple and effective message: “When you ride ALEN, you ride with Hitler.”

Perhaps the modern equivalent is, when you invest in Alibaba shares, you invest in totalitarianism.

Admittedly, at first glance, this scenario may sound like an exaggeration. But when you read between the lines, you will soon realize that China has played a very long game against the United States. In essence, we are incredibly vulnerable right now.

In September last year, US national security authorities sounded the alarm over our dependence on China for critical medical supplies. For several years, strategists have been concerned that Americans rely on drugs – both over-the-counter and prescription-controlled – controlled by Chinese supply chains. Furthermore, the defense authorities warned that Chinese aggression could eventually bring our nation to its knees.

Sure, this is not hyperbole. In March 2019, a leading Chinese economist frankly stated that “China is the world’s largest exporter of vitamins and antibiotics … When exports have declined, the medical systems in some developed countries will not work.” In my opinion, it is a threat.

More worryingly, Fox News host Tucker Carlson reported that China intends to address this threat if it does not receive favorable treatment in terms of trade agreements. I do not mean to sound alarming. But in the midst of the coronavirus panic, China is threatening to put the screws on our heads.

In an interview with NBC News, retired General John Adams stated in full that “Basically, we have outsourced our entire business. [medicinal] industry to China. ”

However, I doubt that most people will stop buying Alibaba shares because of this situation. And that’s why President Trump can force his hand.

Troubles with the wrong president

There are times like these where I am grateful that Trump is our president. If China threatens the American people – either directly or indirectly – our commander will not hesitate to fire back. And considering attacking China’s economy is the best way to do so without bloodshed. I hope it does not happen. But with the Chinese sounding arrogant at a completely inappropriate time, we may have to fend for ourselves.

Given the geopolitical story that underlines the Alibaba share, I think it is best to avoid all Chinese companies. If defense strategists were extremely concerned about China’s potential disruption to medical supplies, imagine how they are doing now.

On another note, avoiding Alibaba shares is a way for the American people to vote with their dollars. Honestly, since coronavirus originated in China, they should do their best to help the international community. Instead, they plan for Cold War 2.0.

Personally, I think this tactic is reprehensible. I’m also not letting the political elite off the hook: they sold us out to the Chinese. Now we are left with a gigantic challenge to correct decades of mistakes. Fortunately, we have the right man for the job.

Josh Enomoto, a former Sony Electronics Business Analyst, has helped broker large contracts with Fortune Global 500 companies. In recent years, he has delivered unique, critical insights for the investment markets, as well as for various other industries, including law, construction management and healthcare. At the time of writing, he had no position in any of the above-mentioned securities.