Kevin O’Leary: China's Xi isn’t focused on investors — and it's a wake-up call to pursue gains in alternative assets

The U.S.-China trade talks in Stockholm have caught the attention of investors around the world. Any shift in the relationship between the world’s two largest economies has the potential to send shockwaves through global markets.

But it’s not just trade that’s in focus. Non-trade issues — like the fate of online video platform TikTok — are also grabbing headlines. And Dragon’s Den star Kevin O’Leary has a stark warning for investors watching the drama unfold.

“I was going to make one observation regarding negotiating with Xi, which is unique to every other country,” O’Leary said during a recent appearance on Fox Business. “Xi — and I know Trump would not do this to him — would never submit himself to the rotisserie-chicken White House press conference. Never. That’s never going to happen.”

He pointed out that negotiations with China are more delicate because of how Xi operates — and that the TikTok situation is just one example of how charged things have become.

O’Leary revealed he’s among a group of investors syndicating a bid to acquire the U.S. assets of TikTok. As part of the ByteDance divestiture, O’Leary called the deal “complicated” with many moving parts. “Midnight, September 17,” O’Leary said. That’s the date TikTok’s Chinese parent company, ByteDance, must divest its U.S. operations. If it doesn’t, the platform faces a full ban. Despite rhetoric about the deadline, the divestiture deadline for TikTok’s U.S. assets was extended from September 17, 2025 to December 16, 2025, as per a White House Executive Order (1).

Will TikTok lose its market share?

O’Leary noted that TikTok’s U.S. business represents about 8.4% of ByteDance’s market cap — not enough on its own to cause panic. The real risk, he argued, lies in what happens next.

“All of a sudden, what those of us that are very involved in the TikTok deal are hearing, Canada says, ‘Wait a second.’ If it goes dark in the U.S. — lights out in Canada, then you’re over in Europe. Other countries say, ‘Well, wait a minute. It must be spyware if the U.S. shut it off,’ just like India did. And slowly but surely, that market cap is being chiseled [away] — one country at a time.”

O’Leary called it a “domino effect of market cap.”

Even if U.S. ownership changes, international reactions still matter. In Canada, Ottawa ordered the wind-up of TikTok’s Canadian business (offices) in 2024 while leaving consumer access intact; privacy regulators in 2025 then found protections for youth inadequate, prompting promised fixes. For investors and advertisers, the platform’s regulatory path remains fluid

Beyond the international fallout, O’Leary warned that if TikTok goes dark in the U.S., users and advertisers will flee — dragging down the platform’s valuation.

Right now, O’Leary and his syndicate have lined up US$20 billion in debt and equity for the deal. But if the platform gets shut down?

“We could do more, but the minute it’s dark, I don’t know. Is it [worth] US$20 billion anymore?”

The implications are serious for ByteDance shareholders. But according to O’Leary, it won’t move the needle for China’s top leader, Xi.

“Do you think Xi gives a boop about $20 billion? He doesn’t give a boop about $20 billion… It’s such a rounding error.” O’Leary said. “All shareholders are waking up to this, all investors. But it’s not Trump that’s holding the TikTok deal up — it’s Xi. And the more I watch this, the more I realize he doesn’t give a rodent’s rear end.”

The lesson, O’Leary says, isn’t limited to TikTok — it’s a wake-up call for anyone considering investing in Chinese companies.

“You’ve got to think about that going forward, when you’re putting together an international fund, how many of these Chinese golden share companies do I [want to own]?” And O’Leary is clear: “ I’m not going to own any.”

O’Leary’s warning underscores a broader concern: rising geopolitical risks and unpredictable trade tensions can rattle even the biggest names in global business. For investors, that uncertainty is a powerful reminder of the need to hedge their portfolios — and protect their wealth from shocks that can ripple across borders.

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Investors can find portfolio safety in alternative assets

In turbulent times, investors often seek out assets that can weather the storm. One that continues to stand out, according to legendary hedge fund manager Ray Dalio, is gold.

“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”

Long seen as the ultimate safe haven, gold isn’t tied to any single country, currency or economy. It can’t be printed out of thin air like fiat money and in times of economic turmoil or geopolitical uncertainty, investors tend to pile in — driving up its value.

Over the past 12 months, gold prices have surged with prices pushing past US$4,000 per ounce for the first time in early October (2). This puts the gains for gold at just under 50% appreciation in 2025 — in Canada that is roughly C$5.5k to C$5.6k per ounce (3).

How to invest in gold in Canada

Gold is considered a safe investment as a potential hedge against market volatility and economic uncertainty.

There are several ways to invest in gold, either directly or indirectly:

• Buy physical gold: coins, bars or bullion
• Buy gold ETFs that track the price of gold
• Buy gold stocks gold-mining companies
  
  

Gold investment options

Check out some details around ways to invest in gold.

Bullion. Purchasing bullion — coins, or bars — is the most traditional way to invest in gold. Canadian investors can make their purchase at CIBC branches, or online through TD Precious Metals, CIBC Precious Metals Fund, or the Royal Canadian Mint. As of writing, the spot prices for one troy ounce of gold is approximately CA$5,076 (4).

ETFs. Exchange-traded funds (ETFs) are a simple way for new investors to get in on the gold market without the risk associated with investing in specific mining companies. ETFs offer a variety of investment strategies: Some track the value of gold futures, directly invest in the companies that mine metal or are backed by physical gold in secure vaults. Canadian investors who buy an ETF or index fund gain exposure to gold without the risk of picking a “winning stock.”

Stocks. Gold stocks are shares of Canadian gold mining companies, and they can be purchased through a brokerage account. One advantage to gold stocks is, these mining companies can sometimes redirect to other precious metals if gold prices fall (5). However, this investment comes with distinct risks: Regardless of the price of gold, a company’s stock price can decline due to poor financials or management.

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Real estate also provides a safe haven for investors

If gold is the go-to hedge for moments of chaos, real estate is the long game. While property values can fluctuate — just like stocks — real estate doesn’t rely on a booming market to generate returns.

Even in a recession, high-quality, essential properties keep generating passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.

Legendary investor Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset. In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would’ve snapped up that deal.

For investors, gold may remain a classic risk-adverse risk, but real estate investment is now considered a time-tested alternative — with the added benefit of generating passive income. And the good news is, you don’t need billions — or even to purchase property — to benefit from real estate investing.

How to introduce real estate into your portfolio

Beyond renting out a room in your house or buying a vacation property to rent out on Airbnb, new real estate investing platforms are making it easier for Canadians to earn money from the market. Alternative methods like crowdfunding platforms or real estate investment trusts (REITs) are allowing investors to own a piece of real estate without a large down payment or the burdens of property management.

Crowdfunding. Crowdfunding platforms offer a way to get into the housing market without owning a physical property. Investors pool their money to collectively fund residential and commercial properties. This passive approach gives investors a share of rental income and property appreciation while avoiding the burdens of property management. Note that most platforms require a minimum investment; however, they also offer diversification and a simple way to get into the real estate game.

REITs. Real estate investment trusts (REITs) also let you invest in real estate — from shopping centres and hospitals to apartment buildings and student housing — without physically owning property. You can earn passive income when the property appreciates in value or earns money (rent) through dividend payments. Typically, investors can buy and sell publicly traded REITs on the stock market, but a REIT ETF can give those who are more risk-averse broad exposure across multiple property types (commercial, industrial, residential). Keep in mind, REITs got hammered during COVID but have bounced back in 2025; a popular proxy, iShares S&P/TSX Capped REIT Index ETF (TSX:XRE), shows approximately 11% to 13% appreciation, year to date, as of early October 2025. Keep in mind, past performance is not indicative of future results.

Consult a professional

Navigating today’s financial landscape can feel overwhelming. With markets swinging wildly and expert opinions often clashing, it’s difficult to know where to put your money. If you’re finding it challenging to make sense of the noise, now could be the right time to get in touch with a financial advisor.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The White House: Further Extending The TikTok Enforcement Delay (1); The Guardian: Gold price tops $4,000 for first time as investors seek safe haven (2); GoldBroker: Gold Price in Canadian Dollar - Canada (3, 4); Financial Times (5)