(Bloomberg) -- The expected appointment of officials with strong anti-China views to President-elect Donald Trump’s cabinet was welcomed by hedge fund veteran Kyle Bass, even as it risks straining ties between the world’s largest economies.
Senator Marco Rubio, who is expected to be named Trump’s secretary of state, and Florida Representative Mike Waltz “understand the enormity of the threat that China poses to the Western world and to the security of the US,” Bass said in an interview with Bloomberg TV Tuesday. Trump nominated Waltz to be his national security adviser.
Bass, a Dallas-based investor who has been carrying a bearish wager against the Hong Kong dollar since 2017, called them “China realists” and argued that investing in Chinese assets is a losing-money proposition in the long term.
“Xi Jinping has been telling you what he’s going to do since 2017 in every public speech, every public appearance he’s made,” Bass said. Investing in China is “a fool’s errand” and “a horrible idea going forward,” he said.
The Chinese yuan has slumped almost 2% against the dollar since the US election. Trump has threatened 60% tariffs on China goods, a move that casts further doubt over the country’s ability to boost economic growth.
China is planning to cut taxes for home purchases as it seeks to revive a moribund housing market, people familiar with the matter told Bloomberg News this week.
Bass started Hayman Capital in 2005 with $33 million and made his name by betting against subprime mortgages before the US housing collapse over a decade ago. He has a history of holding a bearish view on China’s markets and economy.
©2024 Bloomberg L.P.