America can learn from communist China, says Berkshire’s Charlie Munger

“They said, ‘to hell with you,'” Munger added, pointing out that he thought Mom wanted to go into banking… and just do whatever he wanted.”

While he wouldn’t want “the entire Chinese system” in the US, Munger did say, “I would definitely like to have the financial part of it in my own country.”

Buffett didn’t discuss China that much during the CNBC special. Berkshire Hathaway was not immediately available for comment when CNN Business asked him if the company or Buffett had any clarification on what Munger said about China and Alibaba.

‘Gross deductible’

Munger also told CNBC’s Becky Quick that while “our own wonderful free enterprise economy is letting all these crazy people commit these gross excesses,” the Chinese are “stepping in preemptively to stop speculation.”

He also praised China’s approach to the current health crisis. As a totalitarian state, China had the luxury of “just shutting down the country for six weeks” in response to the Covid-19 pandemic.

“That turned out to be just the right thing to do. And they didn’t allow any contact,” he said. “When it was all over, they went back to work. Coincidentally, they did it just right.”

It is not the first time this year that Munger has lavished praise on China.

“So my hats off to the Chinese,” Munger said at the Berkshire meeting. “And I think they will continue to allow people to make money. They have learned that it works.”