Decoupling

Traders work on the floor of the New York Stock Exchange (NYSE) on 15 November 2021 in New York City. (Spencer Platt/AFP)

What financial 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?
This general view shows the headquarters of SenseTime, a Chinese artificial intelligence company based in Hong Kong on 13 December 2021, after the company postponed a planned US$767 million initial public offering after it was blacklisted by the US over human rights concerns in Xinjiang. (Peter Parks/AFP)

China's AI giant SenseTime blacklisted: Is China-US financial decoupling taking place?

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.
A man holds a mobile phone in front of an image of Chinese President Xi Jinping displayed at the Museum of the Communist Party of China in Beijing, China, 11 November 2021. (Carlos Garcia Rawlins/Reuters)

China turning inward? China has always been a civilisation unto its own

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 delivers a major address on 9 November 2021 at Fullerton Hotel as part of the IISS Fullerton Lectures, a prestigious series of events on regional and global security issues organised by IISS–Asia. (SPH)

Chan Chun Sing: Singapore amid great power rivalry

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.
US President Joe Biden arrives to speak about American manufacturing and the American workforce after touring the Mack Trucks Lehigh Valley Operations Manufacturing Facility in Macungie, Pennsylvania, US, on 28 July 2021. (Saul Loeb/AFP)

Could China-US trade relations be thawing?

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?
Two paramilitary police officers patrol in the area south of the Great Hall of the People during the second plenary session of the National People's Congress in Beijing on 8 March 2021. (Greg Baker/AFP)

‘Time and situation’ in China’s favour, but is China invincible?

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.
People walk past the New York Stock exchange (NYSE) and the 'Fearless Girl' statue at Wall Street after heavy rainfall on 30 November 2020 in New York City, US. (Angela Weiss/AFP)

Wall Street, foreign investment hankering for China deals despite US sanctions

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.
Paramilitary police stand guard as people gather to celebrate the arrival of the New Year near the Bund in Shanghai, China, 31 December 2020. (Aly Song/Reuters)

Covid-19 will be overcome, but can China and the US avoid the risk of war and conflict?

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?
Paramilitary police officers wearing face masks patrol on a street in Beijing on 13 October 2020. (Nicolas Asfouri/AFP)

China's wolf warrior tactics confusing, misleading and unprofessional

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?