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While books could be written about whether this is good or bad in aggregate, there are certainly bad things about it. Trade is good.[0] International investment if a form of trade.

To present an argument crafted to appeal on HN: Chinese investors not investing necessarily means that investments have fewer buyers, the market is less competitive, price discover is weaker, and the price of investments is lower and more volatile. This makes it harder to get investment in a startup, riskier and less rewarding to work at one, and increases the likelihood that startups will fail.

[0]: https://ustr.gov/about-us/benefits-trade



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