US-China financial ties face growing strains as trust erodes amid trade tensions
Mutual trust between Washington and Beijing has deteriorated considerably, but a complete severing of ties is highly unlikely, economists say
In the first of a three-part series on financial decoupling between China and the US, experts say the economies of the world’s two biggest countries are highly intertwined and pulling apart would inflict pain equally on both sides.
Together, they added another step to Kingsoft’s fundraising in the US and Hong Kong. The rules apply to any Chinese company engaging in overseas securities financing that could potentially sell to American investors.
“Mutual trust between the two sides has significantly declined,” said Chen Zhiwu, chair professor of finance at the University of Hong Kong. “Once trust is lost, financial relations are particularly vulnerable, as finance relies heavily on commitments across time. Without trust, there can be no sustainable finance.”
