Conclusions and Recommendations

René W.H. Linden () and Piotr Łasak ()
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René W.H. Linden: The Hague University of Applied Sciences
Piotr Łasak: Jagiellonian University

Chapter Chapter 12 in Financial Interdependence, Digitalization and Technological Rivalries, 2023, pp 145-151 from Springer

Abstract: Abstract China’s initial monetary response to the Covid-19 pandemic has been moderate. It was accompanied by a policy of deleveraging and avoiding risk in the financial system. In the past few years, deeper reforms have improved the stability and efficiency of the Chinese financial system and transformed it from a controlled indirect bank-based to a more direct market-oriented diverse and interconnected global financial system. The development of the Chinese financial markets during the last decades, similarly to the US, was accompanied by the digitalization and an increasing application of financial technologies. As a result, both US and China have become the world’s largest financial centers based on financial technology. The economic competition between China and the US in recent years has ultimately led to an economic and technological decoupling between these two largest trading nations in the world. At the same time, in the last decade, the Sino-US financial ties are more characterized by financialfinancial coupling coupling because of their interconnectedness even though this Sino-US financial interdependency has recently come under increasing pressure due to geopolitical tensions between the two countries. It is likely that the current geopolitical competition between the US and China will affect the future of both China's capital markets and the structure of global finance. The rapid development of new technologies and their potential for economic and social changes require international standards to minimize such effects. Amid the current Sino-US technological rivalry with opposing national interests, this pivot ultimately analyzes the possibilities for further Sino-US financial cooperation and regulation in light of the current intensification of the Sino-US rivalry and its impact on the international economic order.

Keywords: Global direct market-oriented financial system; Sino-US trade and subsequent tech war; Sino-US economic–technological decoupling; Financial coupling; Sino-US competitive interdependence; Financial technology; Digitalization of financial services; Coordinated Sino-US financial regulation; International economic order (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-3-031-27845-7_12

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