'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wgARCAAHAAoDASIAAhEBAxEB/8QAFgABAQEAAAAAAAAAAAAAAAAAAAQH/8QAFQEBAQAAAAAAAAAAAAAAAAAAAQP/2gAMAwEAAhADEAAAAMemGn//xAAgEAACAgEEAwEAAAAAAAAAAAABAgMEBQAGERIhIkFx/9oACAEBAAE/AN01sdk6VKtAIIZcWY6VmcR9CeO4cgAewBTwT59tNR2CSSmSuInxZEcsP3hNf//EABgRAAIDAAAAAAAAAAAAAAAAAAERAAIT/9oACAECAQE/AMRVIz//xAAXEQEAAwAAAAAAAAAAAAAAAAABAAMx/9oACAEDAQE/AG5dJ//Z'%3E%3C/image%3E%3C/svg%3E)
In a CNN interview posted on his Instagram on April 12, 2024, Shark Tank investor Kevin O’Leary addresses concerns from American investors about recent market shifts, and highlights what he considers a larger economic issue. Responding to a question about advice for those worried about their 401(k)s, O’Leary discusses U.S.-China trade dynamics. He states,
“Yes, people don’t like watching sausage being made in these negotiations. But if we don’t fix this problem now, while we have the leverage, we’re going to be in a lot more trouble down the road.”
He links current volatility to larger concerns about China’s role in the global economy and the absence of consistent pressure from U.S. administrations.
Trending
Shark Tank's Kevin O'Leary urges U.S. to act on China trade issues amid market volatility
Market behavior and U.S. economic fundamentals
Kevin O’Leary explains that market corrections are part of long-term investment cycles. He notes that volatility is a normal function of price discovery and that investors experience discomfort during corrections.
O’Leary notes that "20% corrections" are a regular occurrence in the market, emphasizing the difficulty investors face when trying to time the market accurately.
The Shark Tank investor references recent fluctuations, observing:
“You’ve seen volatility as much as 7% in four hours on the indexes just in the last 10 days.”
Despite the fluctuations, O’Leary points to long-term patterns, noting that markets typically "align back into their normal advance" and have historically delivered 8% to 12% returns.
He attributes this to the structural strength of the "American economy."
Concerns about China’s approach to economic growth
O’Leary raises concerns about China’s approach to global competition, particularly in intellectual property and manufacturing. He asserts that China avoids major R&D costs and still achieves rapid progress.
“If you don’t have to pay for any R&D, you can get there pretty quickly...I don’t care what it is—military weaponry, right down to ordinary supplies,” O’Leary says.
He claims that China frequently violates international trade standards and points to long-standing disputes as evidence. O'Leary explains that China does not adhere to globally accepted rules, describing this behavior as "obvious" based on repeated patterns.
He refers to repeated complaints filed with the World Trade Organization (WTO), stating:
“Give me a week where there wasn’t a complaint about China and nothing is done about it.”
U.S. economic leverage and policy decisions
O’Leary identifies the U.S.’s current global economic position as an opportunity to influence future trade dynamics. The Shark Tank investor says:
“While we have the leverage, why we are 26.11% of world GDP and almost 40% of all consumables, let’s work this out with China.”
He emphasizes the strategic importance of acting while the U.S. holds economic advantages.
He adds that recent administrative responses show a shift in direction but notes that prior administrations, including global allies, have not effectively addressed these trade concerns.
“I’m just wondering why no administration wants to deal with this, including the Europeans,” he says.
He connects this reluctance to unresolved disputes despite frequent evidence presented to global trade bodies.
Strategic timing and long-term consequences
O’Leary emphasizes that current economic conditions present an opportunity for the U.S. to address unresolved trade challenges.
He suggests that managing short-term market shifts is necessary to take advantage of this period of leverage.
“You have to be willing to stomach the volatility while you bring China who is attempting to steal their way to economic dominance,” he explains.
The Shark Tank investor connects this issue to intellectual property disputes and stresses the urgency of intervention before the global balance shifts further.
Catch new episodes of Shark Tank every Friday at 8 PM ET on ABC.
