Decoupling

Claims that financial decoupling will occur between China and the US are not yet evident from the trade data, says NUS academic Christopher J. Voisey. In 2020, FDI inflows in China increased by 6% and the ease of doing business improved. And while there have been greater hurdles for Chinese companies seeking US listings, their stocks are often still available to foreign investors through alternative channels. Might some turbulence be par for the course as China seeks stronger autonomy and economic power?

The US government has seemingly pulled the rug from under the feet of SenseTime by putting it on a blacklist just a week before its planned IPO, effectively blocking US funding from the AI company. But while the official reason is human rights issues in Xinjiang, perhaps the real reason is the ongoing tech competition between the US and China. If so, it seems that the US has found another lever with which to pressure China — curtailing investment.

The pandemic and China's zero-Covid policy have led some in the West to caution against the danger of China turning inward, closing its border to the world, building a man-made bubble, and adopting a closed nationalist discourse. But academic Lance Gore says China has always been a civilisation unto its own, and it now has both the means and reasons to decouple from the Western-led capitalist system to some extent, so as to pursue its own path of building socialism with Chinese characteristics. This might bring some benefits to China but could also lead to their misreading of the world in the long run, and cause it greater pain when its efforts to lead and galvanise are not reciprocated.

Minister for Education Chan Chun Sing gave the speech titled "Singapore amid Great Power Rivalry" at the International Institute for Strategic Studies Fullerton Lecture on 9 November 2021. He said countries around the world possess some agency even amid great power competition, and Singapore can work together with like-minded partners to help build a better world. And while the US and China might feel their differences sharply, there could be more common interests between them than they would probably want to acknowledge, as both countries share a single global system and biosphere with the rest of the world. Here is the full transcript of his speech.

High-level trade and foreign policy officials from the US and China have articulated their views recently on implementing the phase one trade deal and hopes for cooperation amid a state of strategic competition. Will more of such sessions help to chip away at the great wall of mistrust that has been built between the US and China?

Amid a strong sense that the East is on the rise while the West is in decline, China’s annual Two Sessions came to a close on a confident note, says Han Yong Hong. This augurs well for China’s plan to reach its goal of having a per capita GDP of a moderately developed country by 2035. However, the proof of the pudding is in the eating and unforeseen variables can still develop at every turn.

Even as the US government blacklists several Chinese companies for being “Chinese Communist military companies” or a national security threat, Wall Street does not seem fazed; investors seem prepared to put their money where their mouth is when it comes to betting on China.

US-based researcher Wei Da feels that both China and the US need to make significant adjustments in their relations with each other, or else the scenario of a new Cold War and a real threat of hot war will not be far off. Who needs to understand that the world is different now, and adjustments have to be made? And who is the more backward party that has to adjust more?

When it would have been advantageous to watch and wait while the US leadership transition is carried out, China has decided to up the ante with a high-profile show of wolf warrior diplomacy. Is it setting itself up for a boomerang effect?