Risk Aversion Is for Capitalists: How Tariffs Shaped Communist Economies

Look at the countries and multinational corporations that have made public appearances with Chinese officials post–Liberation Day. Is that necessary—especially if you’re saying one thing to the White House?

Let’s say NVIDIA takes a $5 billion write-down. Where do the majority of their sales still come from?

• Over 50%—and growing—of their sales come from the United States.

• U.S. revenue more than doubled year-over-year, reinforcing its lead.

• China’s revenue grew in absolute terms but declined as a percentage of total sales.

Months or years from now, will NVIDIA’s stock be punished for issues related to “national defense”? Unlikely—especially if they continue introducing more and more high-value GPUs.

Many people use the meme of “look at the trillions in market cap lost in a day” because of the trade war.

But the opposition doesn’t believe in the stock market. Their governments generate revenue through taxes on trade. The central bank’s holdings of foreign exchange reserves—specifically in U.S. dollars—are their liquidity.

How can you expect communists to place value on something as “risk-averse” as stocks when it was tariffs that made them rich?