China and America: Coupling up

Politicians in the US and China warn of decoupling, but at a financial level the two countries are closer than ever. China needs US money and help to build its capital markets. US funds are snapping up mainland securities as they tap into the great investment opportunity of the 2020s. It’s a perfect match.

Many words will define the year 2020. Covid is one. So are facemask, quarantine, lockdown and, of course, Zoom.

Then there is ‘decoupling’, a neologism that refers to the fault line perceived by many to be growing between the US and China.

For years, the two powers tolerated one other. It was an uneasy but workable pact that benefited both sides. Then came Donald Trump. The 45th US president bashed Beijing from day one. He carped about China running a trade surplus while maintaining tariffs on US goods.

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