Noted investor Marc Faber warned this week that Russia’s recent actions in Crimea could be the excuse the Chinese have been waiting for to “seize some territory that they perceive that belongs to them.”
“Crimea is strategically most important for Russia. It has practically no meaning strategically to the United States or to Europe. But for Russia it’s very important. I don’t think that Russia will move further into Ukraine unless there is serious provocation,” Faber, known more famously as “Dr. Doom,” said Monday during a Bloomberg TV interview. “But I doubt it will happen. But I think the wider implication is that we have now border lines.”
He said China, like the U.S., will intervene if its access to resources is threatened by a foreign power.
“This is very important because the occupation or say the referendum in Crimea and Crimea moving to Russia gives essentially a signal to China that one day they can also move and seize some territory that they perceive that belongs to them,” he said.
Here’s Faber discussing a few of the other economic issues facing China:
Before explaining how the Russian excursion into Ukraine could affect China, Faber discussed why Russian President Vladimir Putin’s recent actions regarding Crimea have been “the right thing to do.”
“I think as an international server, Mr. Putin did the right thing from his perspective. We have to look – put ourselves into his shoes. He did absolutely the right thing at the right time. I don’t think he –” Faber started.
“I’m sorry. He did the right thing at the right time. What do you mean by that, Marc?” Bloomberg TV’s Trish Regan interjected.
“By that I mean that there was interference by foreign powers in Ukrainian politics that were unfavorably from the perspective of Russia. And –”
“So he – he needed to save his warm water ports? He went in and took over this region, which you see as a logical political move. I guess the big question is — is he going to do more?” Regan asked.
It was at that moment that Faber launched into his warning about China.
(H/T: Business Insider)
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