American pensions were the biggest victim of the Chinese government's move to tighten its grip on Big Tech stocks, former White House adviser Peter Navarro said Wednesday.
"Big Tech in China is their target, but one of the biggest victims was the American pension funds," said Navarro on CNBC's "Squawk Box." "What we've had in the wake of what's happened is we've already (seen) a slow burn. Because of the zero interest rates and ability to generate high returns we've seen a $400 billion bite out of these stocks."
Navarro said he thinks the country's leader, Xi Jinping, may have taken a look at what big tech "did to Donald Trump and his power" and decided not to allow companies like Facebook, Google, and Twitter to become that large in his country, but now that it's happened, it is "almost impossible to grab back capital."
"When I was in the White House, we spent a lot of time talking about the need, and (we) took some action preventing pension funds in investing in Chinese stocks."
But "with the stroke of a pen," Xi can "wipe out an entire industry," said Navarro, and "eventually took $4 trillion out of the capital of this country."
Big Tech also provides a powerful weapon because of its ability to gather data, and that ability can be dangerous in the hands of an authoritarian state like China, said Navarro.
"They are willing to surrender lives and billions to advance their own political agenda and whole power in Communist China," said Navarro. "In the White House, we took big steps to choke off from the flow but we didn't go near far enough."
Navarro also commented on the Chinese and their role in the COVID-19 pandemic, saying the Communist government can't be trusted.
"The Republican report that came out really shocked me and I shouldn't be shocked by anything," said Navarro, commenting on the GOP-led report on the Wuhan Institute of Virology released earlier this week.
"I know more than anyone who happened in Wuhan. The virus actually started in Wuhan in September," he added.
The report, released by Republicans led by Rep. Michael McCaul, R-Texas, showed evidence proving that the coronavirus that caused the COVID-19 pandemic leaked from the Wuhan lab.
It also cited "ample evidence" that Wuhan Institute of Virology (WIV) scientists, with the help of U.S. experts and Chinese and U.S. government funds, had been working to modify coronaviruses to infect humans, and that such manipulation could be hidden.
Navarro said that the Chinese hid the virus from the rest of the world for months, rather than revealing it in September 2019 and that if there had been that extra five months, "half of the people who died" would have lived.
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