Kevin O'Leary: Xi Jinping 'Doesn't Give a Rodent's Rear End' About TikTok

US-China Trade Negotiations

• 🇺🇸 The Treasury Department reports that America's GDP grew at 2.3% and prices rose at 2.4% annually in the second quarter, indicating Trump's trade agenda has not harmed growth or inflated prices.
• 🇨🇳 Trade talks with China are ongoing, with a potential meeting in 90 days, but the US warns of returning to high "Liberation Day" tariff levels if no agreement is reached.
• 💡 China possesses leverage through rare earths, despite US efforts to reinvigorate its mining sector, making it a difficult negotiation partner.

TikTok's Uncertain Future

• 🚫 There's a strong possibility that TikTok will go dark in the US on September 17th, as lawmakers are reportedly unwilling to extend the deadline further.
• 📉 This potential shutdown is seen as a signal that the US views TikTok as "Chinese spyware," which could trigger similar actions in other countries like Canada and Europe, impacting ByteDance's market cap.
• 🌍 The market cap of ByteDance is significantly affected by potential shutdowns, with shareholders facing substantial losses if the platform goes dark in key markets.
• 📊 Businesses relying on TikTok for revenue are developing contingency plans, with some already shifting their advertising spend to other platforms.

Xi Jinping's Perspective on TikTok

• 💰 Kevin O'Leary states that Xi Jinping likely does not care about the financial implications of TikTok, viewing the potential $20 billion market cap as a "rounding error."
• ⚠️ The core issue for China is the perception of TikTok as spyware, which could lead to a domino effect of market cap erosion across various countries.
• 🤝 The negotiation with Xi Jinping is unique due to China's desire to save face, and O'Leary believes Xi is unlikely to prioritize TikTok in these delicate discussions.
• 📈 Investors are being cautioned about the risks associated with Chinese "golden share" companies, especially in light of potential international shutdowns of platforms like TikTok.