British wit Samuel Johnson described second marriages as “the triumph of hope over experience.” So is Wall Street’s enthusiasm for sinking billions more of our money in Chinese Communist e-commerce conglomerate Alibaba.
After all, the company is a case study in the dangers of investing in China. Its founder, Jack Ma, ran afoul of Chinese dictator Xi Jinping, and his company was punished, resulting in a dramatic and protracted loss in share value. There is no guarantee that similar non-market forces won’t adversely impact U.S. investors in companies like Alibaba in the future.
The larger problem, however, for Americans whose pension funds or other investments have been sunk in Chinese corporations is that, in the event of the shooting war that Xi seems intent on launching, they will lose every cent. U.S. investors must divest from Communist China while they still can.