Stop investing in Chinese stocks, said Hayman Capital Management founder
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With China publicly declaring their âno-limitsâ partnership with Russia, western investors should refocus their investments on the U.S., âthe best market in the world,â said Kyle Bass, Hayman Capital Management founder and CIO.
The longtime critic and advocate for tougher restrictions for Chinese companies said in a CNBC interview on Tuesday that national security and geopolitics will drive the next two decades, âand we need to have leadership hold their ground when they make foreign policyâ¦and stop allowing private sector to push back on these sweeping restrictions.â
The CHIPS Act, which passed last year, was the crowning achievement of the Biden Administration's foreign policy, said Bass. 
The legislation would restrict exports of Nvidiaâs (NASDAQ:NVDA) A800 and H800 chips to China. It could also affect chips and equipment sold by Intel (INTC), AMD (AMD), Applied Materials (AMAT), Lam Research (LRCX) and KLA Corp. (KLAC).
âOnce Oct. 7, 2022, happened, you saw the chip companies parading the DC, saying, âYou can't restrict us; that restricts our salesâ,â he said. âThese CEOs do not look after U.S. or European security. They look after their bottom lines. So, we can debate the economic effects, but the national security actively matters.â
On Oct. 12, there was a bipartisan congressional committee to review the U.S.âs strategic position in nuclear arms and nuclear strategy. The commission listed China and Russia as the U.S.âs two top adversaries in nuclear power. 
President Biden also plans a November meeting in San Francisco with Chinese leader Xi Jinping âas an attempt to stabilize the relationship between the world's two most powerful countries,â according to senior administration officials, CNN reported. 

China and Russia are âworking in concert in every way, off-limits,â Bass said. âAnd yet, here we are talking about which Chinese stock should we buy?â


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