Containers of China COSCO Shipping Corporation Limited are seen at the Port of Long Beach in Los Angeles County, the United States, Feb. 27, 2019. (Xinhua/Li Ying)
The best example of China's deepening integration into global financial markets is the "substantial increase" in the role of U.S. and other foreign financial institutions in China, as Chinese regulators in 2019 and 2020 eased restrictions on ownership and other factors.
WASHINGTON, July 5 -- Financial decoupling between the United States and China is "increasingly unlikely" despite the Trump administration's rhetoric, said Nicholas Lardy, senior fellow at the Washington, D.C.-based think tank Peterson Institute for International Economics (PIIE).
"For all the fireworks over tariffs and investment restrictions, China's integration into global financial markets continues apace," according to an analysis co-authored by Lardy and PIIE research analyst Tianlei Huang, published on Thursday.
"Indeed, that integration appears on most metrics to have accelerated over the past year," they said, noting that U.S.-based financial institutions are actively participating in this process, and hence U.S.-China financial decoupling is "not happening."
Lardy and Huang said the best example of China's deepening integration into global financial markets is the "substantial increase" in the role of U.S. and other foreign financial institutions in China, as Chinese regulators in 2019 and 2020 eased restrictions on ownership and other factors.