The government of Xi Jinping has a clear objective in seeking to lure in American financial entities into China. They obviously want access to more capital, but the Chinese also view Wall Street as an important ally in shaping American governmental policy toward China. The Chinese have astutely recognized that Wall Street has power in Washington and that American financiers of all stripes will lobby to maintain cozy U.S.-China relations–particularly if they have money on the line.
Now we learn that the China Institute, a de facto front organization for Beijing, is actively trying to lure more Western investors into China. My advice to all Western investors–you’d have to be out of your mind to invest more in China at a time when relations between China and the United States, and between China and the rest of the world, are hardening. I don’t think we are headed for a complete decoupling, but there are likely to be some disruptions ahead. Do not assume that your self-interest can prevent the American government, or any government, from acting in its best national interest.
 Explore new opportunities and challenges for foreign financial companies in China
A year since China opened up its financial markets on paper, have foreign firms been able to grab a bigger slice of its $48 trillion financial sector businesses? What does China’s deepening of financial integration into the world mean for the country and U.S. institutions? How do U.S. financial sanctions impact China’s financial regulatory reform?
Join top financial experts Andrew Collier, founder of Orient Capital Research, and Li-Gang Liu, Chief China Economist at Citi Group, recently approved to become the first US custody bank in China, for an in-depth discussion of China’s financial opening. |
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