Practical implications of US-China decoupling

Tensions between the US and China are affecting decisions companies make about where to invest and structure their supply chains vis a vis third countries. South Korea is exposed to risks related to US-China tensions, the Peterson Institute for International Economics warns, and Chinese companies are choosing to invest in Mexico to avoid US tariffs on Chinese exports, Nikkei Asia reports.

The US continues to impose restrictions on technology exports to China, but are those restrictions enforced and effective? The US Government approves nearly all tech exports to China, the Wall Street Journal reports.

As the US and China struggle to reach an agreement over information that US-listed companies are required to disclose, five major Chinese companies announce that they will delist from US exchanges, per Bloomberg. Dexter Tiff Roberts argues that this move marks the end of an era for Chinese corporate engagement in the US.

Mentioned Publications

South Korea should prepare for its exposure to US-China technology tensions – Mary E. Lovely and Abigail Dahlman, Peterson Institute for International Economics, July 2022
South Korea’s deep economic engagement with China may complicate its ability to export to the US.
Chinese factories flock to Mexico, crossing U.S. border to avoid tariffs – Kosuke Shimizu and Yusuke Hinata, Nikkei Asia, 17 August 2022
Chinese investments in Mexico soar as companies seek to avoid US tariffs.
U.S. Approves Nearly All Tech Exports to China, Data Shows – Kate O’Keeffe, The Wall Street Journal, 16 August 2022
Despite identifying technology trade with China as a national security concern, the US Commerce Department approves nearly all requests to sell to China.
China State-Owned Giants to Delist From US Amid Audit Spat – Lulu Yilun Chen and John Cheng, Bloomberg, 12 August 2022
Five Chinese companies with a combined market capitalization of $300 billion exit US exchanges.
Giant Chinese companies delisting from U.S. exchanges signals the end of an era – Dexter Tiff Roberts, SupChina, 19 August 2022
The delisting of five major Chinese companies could portend a greater pullback from US listings.