2019: Is the investment climate in China improving?

AUDIENCE MEMBER: Hello, Mr. Buffett and Mr. Munger. I’m Sasha Xixi (PH) from China International Capital Corporation Limited.

Last week, China announced 12 new measures further opening up the financial industry. All these measures will allow more invested institutions to enter into the Chinese financial market and ensure the policies of foreign investment to be consistent with those of domestic investment.

What do you think about these new measures? Do you believe the foreign financial institutions will have more pricing power over the Chinese stock markets in the future? Do you have any plans to set up a company in China? If so, what time? Thank you.

CHARLIE MUNGER: Well, we’ve got one now. Dairy Queen is all over China. (Laughter)

And it’s working fine. And we didn’t wait for new laws. We did it under the old laws. But we’re not that big, net, in China, right, Warren?

WARREN BUFFETT: We’re not that big what?

CHARLIE MUNGER: In China.

WARREN BUFFETT: No, but we had something, you know, that could have happened that would have been quite sizable.

But China, it’s a big market, and we like big markets. I mean, we really can only deploy capital in a major way maybe in 15 or so countries just because of the size.

CHARLIE MUNGER: But generally, I think the climate is getting better. It really makes sense for the two countries to get along. Think of how stupid it would be if China and the United States didn’t get along. Stupid on both sides, I might add.

WARREN BUFFETT: Yeah. We’ve done well in China. We haven’t done enough, but —

(Applause)