Because China operates with a closed capital account through four SOE banks and twelve joint-stock banks dependent on dollar access, the US holds China's 'ticket into the world financial system,' so when China goes kinetic over Taiwan the US can hobble it financially, making it hard for Xi to hang on—likely precipitating regime change.
forecastpending
Speaker
Kyle BassEvidence Quote
“when we hobble them financially, it's going to be hard for she to hang on... that's that's likely the progression of that regime's exit when if and when he goes kinetic.”
Source
Global Macro Investing And Geoeconomics With Hedge Fund Investor Kyle Bass | Hoover Institution— Hoover InstitutionCreated: 6/18/2026, 2:17:47 PM
My Notes
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