China and Globalization | SALT iConnections Asia

TL;DR

Globalization has faced setbacks but will continue, with China playing a vital role in maintaining inclusive globalization.

Transcript

foreign chairman of CEO of BlackRock made earlier in the year uh they were questioning him about the Ukrainian war with the Russians and he said well you know the age of globalization is effectively over and we're going to be spending our time now uncoupling ourselves from each other do you believe that to be the case well yeah thank you Anthony I ... Read More

Key Insights

• 😀 Globalization has faced setbacks due to events like the Ukrainian war, but it will continue to some extent, especially in China and Asia through regional agreements.
• 💢 The world has already changed and become interconnected, making a complete return to separation and a Cold War-like era unlikely.
• 💦 The future of globalization depends on countries like China, the US, and the EU working together and finding peaceful solutions to challenges.
• 🇭🇰 The Hong Kong Stock Exchange has a crucial role to play as China's capital markets grow, providing international investors with access to a rapidly expanding market.
• 🇨🇳 Maintaining the status quo with Taiwan is essential, and both the US and China should avoid actions that destabilize the situation.
• 🇨🇳 Positive outcomes from the US midterm elections would give President Biden more leverage in bilateral relations with China.
• 🥳 Achieving same-day trade settlements or even t plus zero settlements in the stock exchange industry will take time but can learn from the cryptocurrency industry.

Questions & Answers

Q: Do you believe globalization will continue despite setbacks?

Yes, globalization will continue, as seen through the momentum in cross-border trade, investments, and regional agreements like RCEP and CPTPP. Although there have been setbacks, countries need to work together for inclusive globalization.

Q: Why did the US pull out of the TPP?

It is a pity that the US pulled out of the TPP, as it set higher standards for global trade, including digital economy and trade liberalization. However, China has shown interest in joining the TPP, and the US should consider rejoining.

Q: How does Hong Kong Stock Exchange fit into the future?

The Hong Kong Stock Exchange has a significant role to play as China's capital markets grow. China's capital markets are expected to triple in size over the next 10 years, providing immense opportunities for international investors. Hong Kong's connectivity and international institutions make it an attractive gateway.

Q: Will the US and China maintain the current position regarding Taiwan?

President Biden's recent statements indicate that there is no imminent plan for China to attack Taiwan. Maintaining the status quo is crucial, and both sides should avoid actions that destabilize the situation and lead to conflict.

Q: Will the midterm elections help President Biden in his conversations with President Xi?

Positive outcomes from the midterm elections that steer away from populism and nationalism would give President Biden more leverage in bilateral relations with China. The friendship and positive signals between the two leaders can lead to a better relationship.

Q: Will the Hong Kong Stock Exchange move towards same-day trade settlements?

While the industry is moving towards faster settlements, achieving same-day trade settlements or even t plus zero settlements will take time. It requires significant investment and infrastructure changes. However, lessons can be learned from the cryptocurrency industry to improve settlement processes.

Summary & Key Takeaways

• The Age of Globalization is at a crossroad, with the Ukrainian war causing a setback, but globalization will continue, especially in China and Asia through regional agreements.

• The world has changed and is already a global village, making a return to separation and a Cold War-like era unlikely.

• Globalization will depend on how countries, particularly China, the US, and the EU, work together and find peaceful solutions to challenges.