Chinese authorities have given Goldman Sachs the right to take 100 percent control of its Chinese affiliate, as per this story in the New York Times. This is all very cynical, even for a company whose very name stands for shady dealing. Remember the multi-billion dollar scandal in Malaysia?
By giving Goldman a lucrative deal, the government of Xi Jinping is clearly calculating that Goldman will use its political clout in Washington to stave off the threat of negative actions toward Chinese interests by the Biden Administration. Goldman, for its part, is clearly calculating that it can do just that. One argument it can make, if the need arises, is that negative policy actions toward China would cause deep stress to the American financial system. Goldman and other financiers that have recently been granted new operating powers in China are betting they can use scare tactics.
This is the height of arrogance and cynicism. But that’s what we expect from Goldman Sachs.
