Beijing turns inward as US decoupling gathers pace

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This month’s US and Chinese corporate developments tell a clear story of the separation of superpowers.America SenseTime Blacklist, First-class Chinese Artificial intelligence company, And Didi’s decision to delist from the New York Stock Exchange in response to China’s Uber share the same precedent. As strategic distrust grows at the national level, the jackpot for Chinese companies’ funding on Wall Street is coming to an end. This is by no means a small thing. According to the US-China Economic Security Review Board, as of May this year, there were 248 Chinese companies listed in the United States, worth $ 2.1 trillion.

Such lists look more or less vulnerable — thanks to the deep-seated nature of the allegations that are throwing superpower bonds into the freezer. Both Beijing and Washington are trapped in the desire to separate, especially when strategic interests and sensitive data are involved. Didi, which launched its largest listing by a Chinese company in the U.S. in June since Alibaba in 2014, is worried that the vast mapping of ride-hailing companies and other sensitive data may fall into the hands of foreigners. Invited regulatory anger.

The US decision to blacklist SenseTime this month has also driven security concerns.Washington added SenseTime to List of 59 Chinese A defense and surveillance technology company that President Joe Biden banned American investment in June. The impact of SenseTime inclusion was rapid. Within a few days, Chinese companies have announced that they will postpone the $ 767 million initial public offering in Hong Kong and will resume offerings “soon” after issuing a revised version of the prospectus.

At the heart of Washington’s move is a comprehensible opposition to US investors who are involved in China’s “military-industrial complex” and support companies that have accused the United States of allowing human rights abuses. Islamic Uighurs Northwestern Xinjiang Uygur Autonomous Region.

Much more difficult is knowing where such concerns should end. China is developing a “society-wide” initiative to gain AI leadership. To serve the PLA’s objectives, it has launched a “civil-military fusion” strategy in which even private companies can be ordered to hand over key technologies and data. The effect of such broad and opaque China policy is to allow US suspicion of all but the most low-tech companies and widen the division between America Inc and China.

All this encourages an already obvious conservative urge in Beijing’s treatment of debt-bearing real estate developer Evergrande. It is worth noting that the slow unraveling of one of China’s largest private companies is being coordinated by state officials. Four of the seven seats of the Commission established to manage the risk of the Evergrande Group are held by representatives of state-owned enterprises controlled by the central or local governments of southern Guangdong.

In this way, China’s future vision is embodied. Mutual separation underscores China’s inward conversion and promotion of state actors, forming a breakwater against both domestic vulnerabilities and distrustful foreign powers. Fortress China is under construction.

The momentum behind this unfortunate metamorphosis is strong. But Beijing should keep in mind that the extraordinary success of the last 40 years has been largely built on an “open door” policy with the outside world. The influx of foreign investment, technology and knowledge has contributed significantly to the rise. With the recent recovery from the trend of protected trade, it may continue to do so in the future.

Beijing turns inward as US decoupling gathers pace Source link Beijing turns inward as US decoupling gathers pace

The post Beijing turns inward as US decoupling gathers pace appeared first on California News Times.

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