And it is a message that Billionaire Wall Street Titan wants the United States to remember, saying America must ‘take a deep breath’ when it comes to relations with China.
“We have all the food, water and energy we need,” Dimon said in a statement. Wall Street Journal interview published yesterday.
The two nations are separated by vast oceans, Dimon also pointed out, and no war in North or South America is adding to geopolitical tensions.
Even though the United States is self-sufficient for many its own resources, underlines this 68-year-old man: “China imports 11 million barrels of oil per day. They are a very complicated neighbor– their own actions push all their neighbors to rearm. Their GDP per person is $15,000 against our $80,000. So we are in a very good position.
In fact, the gap between China’s GDP per capita and that of the United States is even greater than Dimon exposed. According to International Monetary FundChina’s GDP per person is around $13,000, while that of the United States exceeds $85,000 per person.
With this in mind, Dimon said: “We must restructure trade around national security. »
It’s a warning he has already given. In his 2023 letter to shareholders, Dimon wrote that the United States’ dependence on China for its own national security is the “most critical” aspect of the problem.
“The United States cannot rely on any potential adversary to obtain materials critical to our national security,” he explained.
“Think about rare earths, 5G and semiconductors, penicillin and essential materials for essential pharmaceuticals, among others. Nor can we share vital technologies that could enhance an adversary’s military capabilities. »
But “they need oil and gas,” Dimon stressed.
“So I would negotiate them around all of that,” the Wall Street veteran said, adding that he was happy that the United States appeared to be doing so.
“Difficult to have a good relationship”
Given certain geopolitical alliancesDimon said it is difficult for the United States and China to maintain “good” relations at present.
This week, NATO Secretary General Jens Stoltenberg told China that if it wants to maintain relations with the West, it must stop supporting Russia’s war in Ukraine.
During a visit to Berlin this week, Stoltenberg said Beijing was helping to support the Russian economy by sharing technologies such as semiconductors.
By Reuters, Stoltenberg said Russia imports 90% of its microelectronics – needed for missiles, tanks and planes – from China. Beijing is also helping Russia by improving its satellite and imaging capabilities, he added.
“China says so wants good relations with the West. At the same time, Beijing continues to fuel the largest armed conflict in Europe since World War II. They can’t have it both ways,” Stoltenberg said.
Dimon echoed this sentiment, saying: “As long as Ukraine is there and they are doing everything to help and encourage them, I think it is very difficult to have good relations with them. »
“I’m happy that the government has the power to do certain things,” he added. “If, in fact, some of these things are true, then yes, they should impose sanctions. But besides, they should expect some to come back.
This week, the The WSJ reported— citing sources familiar with the matter — the United States is developing sanctions that threaten to cut off some Chinese banks from the global financial system, in an effort to restrict China’s relations with Russia.
What if Russia won?
Dimon, who received $36 million for his work in 2023, has repeatedly said the biggest threat to the global economy is geopolitics.
In September last year, Dimon told affiliate network CNBC CNBC TV-18: “We’ve faced inflation before, we’ve faced deficits before, we’ve faced recessions before, and we haven’t really seen anything like (the war of Russia in Ukraine) since World War II. »
And if President Putin prevails over President Zelensky, it could be a “potential disaster,” Dimon said this week.
“This is the first war in Europe, a free and democratic nation invaded by 200,000 or 300,000 Russian soldiers under the threat of nuclear blackmail.
“We’ve never had nuclear blackmail before, which also teaches the whole world that maybe having nuclear weapons is a good thing because people will be afraid of you and you can abuse a neighbor if you want it,” the Wall Street veteran said. continued.
But a Russian victory could also realign world powers, Dimon said, as other countries question whether America will come to their aid…whether on a military or economic level.
“I’m a little concerned that if Russia wins this war, the world will go into a bit of chaos as people realign their alliances and their economic relationships,” he concluded.
