Financial Interdependence, Digitalization and Technological Rivalries : Perspectives on Future Cooperation and Integration in Sino-American Financial Systems

This Palgrave Pivot investigates how the Chinese and United States financial systems are becoming increasingly interdependent, in spite of a simultaneous technological rivalry and ‘decoupling’ between the two nations. The book offers a comparative analysis of Sino-US financial systems before and after the global financial crisis of 2008-2009, demonstrating the deepening integration of China into global financial markets and its move from an indirect bank-based system towards a direct market-oriented system. It discusses the economic and technological competition that has arisen between the US and China, the two largest financial centers based on financial technology, and demonstrates the differences in national interest driving processes of digitalization and FinTech applications. At the same time, the book points to ways in which a market-oriented global financial system and the rapid international growth of financial technology make future cooperation inevitable and necessary. This book places Sino-US financial relations in a broader financial-economic perspective and will be of interest to academics, consultants and students working in banking and finance, international financial markets, comparative economics, monetary theory and Chinese business studies. Contents List of Figures List of Tables 1 Introduction Reference 2 A Comparative Analysis of the Chinese and the US Financial System and Its Regulatory Environment References 3 China’s Deepening Integration into Global Financial Markets: Lessons Learned from Its US Counterpart China’s World’s Biggest Banking Sector and Its Stock Exchanges China’s Drawbacks of the Financial System Deeper Market-Oriented Reforms and Integration into the Global Financial System Transition from Indirect Bank-Based to Direct Market-Oriented Financing to Serve the Real Economy The Recent Rapid Increase in Foreign Holdings of Onshore RMB-Denominated Chinese Securities Gradual Broadening and Deepening of the Opening of the Chinese Capital Markets References 4 Pre- and Post-pandemic Sino-US Inbound and Outbound Investments US Direct Investments in China China’s Direct Investments in the US References 5 The Rise and Decline of China’s Shadow Banking Subject to a Deleveraging Policy References 6 Current Trends in the Digitalization Process and Related Fintech-Based Businesses of the Sino-US Financial Markets References 7 The Digitalization of Cross-Border Payment Systems and the Introduction of the CBDC References 8 The Ongoing Sino-US Trade War and Subsequent Tech War References 9 The Sino-US Technological Decoupling and Ways to Address It References 10 The Future Sino-US Financial Coupling or Decoupling Accompanied by Their Fierce Rivalry with Different National Approaches References 11 The Current Intensifying Sino-US Rivalry and Its Impact on the Possible Future Scenarios About the International Economic Order References 12 Conclusions and Recommendations Reference References Index