Trade war: Expect more financial decoupling between China and the US – NBF

Investors and businesses from both China and the United States  must learn to navigate a world that features two superpowers with radically different economic systems and a growing mutual mistrust, according to analysts at NBF.

Key quotes

“Even as the United States and China are trying to put the finishing touches on a trade deal or truce, there is increasing pressure from Democrats and Republicans, as well as the national security establishment, to impose restrictions on Chinese corporate access to U.S. financial markets and funding.”

“This often means navigating a maze of contradictory rules where complying with U.S. financial regulations can place a company in violation of Chinese law, and vice versa.”

“As a result, market access for companies in sectors deemed strategic by both sides will often depend on whether their business plans, products/services and supply chains are compatible with the geopolitical objectives of either country.”