Shark Tank’s Mark Cuban schools President Donald Trump on how he would win the trade war against China if he were the president. Dallas Maverick’s owner said that instead of slapping tariffs on Chinese product, the country’s leader should instead ban Chinese companies from publicly offering and trading in the U.S.
“I’d shut down all Chinese IPOs—that’s the first step,” says Cuban, a billionaire entrepreneur and host of the show “Shark Tank.” “Given [Trump’s] propensity for using Twitter and throwing warning shots, I would throw out there that we might put a halt on the trading of Chinese-listed stocks in the United States.”
“A trading halt would certainly create a lot of disruption for those Chinese companies,” adds Cuban, who’s considering an independent run for president in 2020.
Amid efforts of the Trump admin to win the trade war against another economic superpower, the ongoing – and messy – rallying of policies aimed to restrict each other’s economic power has caused significant slides in U.S. markets as investors and other stakeholders anxiety grew over the trade wars.
“I’m not a fan of the tariffs,” Cuban says. “I think tariffs are attacks on the American people.”
A study by Federal Reserve Bank of New York, Princeton, and Columbia says that Trump’s policies and tariffs cost U.S. consumers $1.4 billion in income per month as of November. Cuban, however, also acknowledged that his proposed ban on Chinese companies to trade in the US might also negatively affect Americans, especially those who hold stocks with the banned companies.
“Now, they are American shareholders, but the reality is that long term, the value of the company is the value of the company,” he says.
As of February, 156 Chinese companies were listed on major U.S. stock exchanges with a total market capitalization of $1.2 trillion, according to the U.S.-China Economic Security and Review Commission, a group tasked by Congress to monitor the trade relationship between the two countries.