December 1, 2023
Jamie Dimon says Americans should stop thinking of China as a '10-foot giant' – and warns that geopolitical tensions are the biggest threat to the world economy

Geopolitical tensions pose the biggest threat to the world since World War II, according to JPMorgan CEO Jamie Dimon – but he argued that China is not as big a threat to the US as some Americans believe. .

In an interview with CNBC affiliate network CNBC TV-18 on Tuesday, the Wall Street veteran said his biggest concern at the moment is rising geopolitical tensions, which he argued are “absolutely” the biggest threat to the global economy. Are.

Dimon said issues such as migration, instability in energy markets, food security and the ongoing war in Ukraine are affecting global relations.

“We’ve dealt with inflation before, we’ve dealt with deficits before, we’ve dealt with recessions before, and we really haven’t seen anything like this since World War II,” he told the Indian news channel.

“I think America takes [Russia’s invasion of Ukraine] Very seriously, I’m not quite sure how the rest of the world does. You have invaded a European democratic nation under the threat of nuclear blackmail. “I think it’s been a good response, but unless the war is resolved somehow, it will have an impact on all of our relationships.”

While Dimon, who has led America’s largest bank since 2006, said the humanitarian impact of the war was the most important factor that policymakers had to consider, he warned that its consequences would also have implications for the future of the free democratic world. Was important.

“We may be at a turning point for the free democratic world,” he said. “I take it so seriously.”

China is not a ‘ten foot giant’

Dimon said, in view of Russia’s attack on Ukraine, every country including America is reconsidering its borders. Dimon said in a Tuesday interview that national security, the energy supply chain and the sourcing of semiconductors were now immediate priorities for governments.

“Where will I get my rare earths? Ukraine has made everyone aware of this and now it is a permanent situation,” the JPMorgan boss said.

Importantly, he said, the broader geopolitical and economic backdrop is putting pressure on relations between Washington and Beijing.

Bilateral relations between the US and China have deteriorated in recent years, with the Biden administration taking several steps to undermine Beijing’s bid for economic dominance. Those steps — which include sanctioning Chinese officials, introducing export controls on U.S. semiconductors and banning U.S. investment in some Chinese technological developments — follow a $360 billion imposition on Chinese goods by Joe Biden’s predecessor, Donald Trump. based on tariff.

China has retaliated against the US, including imposing its own sanctions and controls on certain goods.

Economic rivalry, along with security and espionage concerns, allegations of Chinese human rights abuses and tensions over Taiwan have impacted relations between the two countries.

While many US lawmakers – both Democrats and Republicans – have described China as an “existential” threat, Dimon urged the US to stop viewing China as a formidable threat.

Dimon said, “I’m an American patriot, so governments are going to set foreign policy, not JPMorgan, but I think Americans need to stop thinking of China as a 10-foot giant.” “Our GDP per capita is $80,000, we have all the food, water and energy we need, we’ve got an incredible amount of free enterprise and freedom.”


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