Financial Cold War - A View of Sino-Us Relations From the Financial Markets

A groundbreaking exploration of US-China relations as seen through the lens of international finance
 
Rising tensions between China and the United States have kept the financial markets on edge as a showdown between the world's two largest economies seems inevitable. But what most people fail to recognise is the major impact that the financial markets themselves have had on the creation and acceleration of the conflict.
 
In Financial Cold War: A View of Sino-US Relations from the Financial Markets, market structure and geopolitical finance expert James Fok explores the nuances of China-US relations from the perspective of the financial markets. The book helps readers understand how imbalances in the structure of global financial markets have singularly contributed to frictions between the two countries.
 
In this book, readers will find:
* A comprehensive examination of the development of financial markets in both China and the US, as well as the current US dollar-based global financial system
* Insightful observations of the roles of technology, innovation, regulation, taxation, and politics in the markets, and on their resulting effect on US-Sino relations
* Thorough explorations of the role of Hong Kong as an intermediary for capital flows between China and the rest of the world
* Suggestions for how, balancing the many varying interests, policymakers might be able to devise effective strategies for de-escalating current Sino-US tensions
 
Financial Cold War is a can't-miss resource for anyone personally or professionally interested in the intersection of economics and international relations, financial markets, and the infrastructure underlying the international financial system.

List of contents

Preface xi
 
Acknowledgements xix
 
Abbreviations xxiii
 
Chapter 1 Introduction 1
 
Legacy of the GFC 5
 
Modern History of Sino-US Relations 6
 
The Financial Roots of Sino-US Conflict 11
 
The Financial Path Out of Conflict 15
 
Part One The Colour Of Money Turns Green 17
 
Chapter 2 How the US Dollar Took Over the World 19
 
An Ad Hoc Position 21
 
The Barbarous Relic 24
 
Two Competing Plans 30
 
A British Innovation 34
 
The Coupon Express 36
 
Plumbing the World's Financial Markets 42
 
Niksonu Shokku 47
 
Volatility 51
 
'Risk Free' Assets 57
 
Boom and Bust 62
 
Chapter 3 Whose Problem? 65
 
The Unipolar Moment 69
 
The Almighty Mr. Market 74
 
Emerging Markets Crises 84
 
The Weakest Link 98
 
The Music Stops 102
 
Anyone for Tea? 108
 
A Tipping Point? 113
 
Part Two Capitalism With Chinese Characteristics 123
 
Chapter 4 From First World to Third and Back Again 125
 
Maritime Power 131
 
The Milk of Paradise 135
 
Wars and Revolutions 147
 
A Leap into the Abyss 156
 
Herding Cats 161
 
Crackdown 172
 
Journeys to the South 177
 
A New Path 181
 
The Bird's Nest 187
 
Chapter 5 Two Steps Forward, One Step Back 192
 
Going Public 197
 
The Protection Racket 206
 
The Price of Money 212
 
Still Building, But Will They Come? 221
 
Alien Attack 228
 
Who Will Look After Grandma? 237
 
Connecting China and the World 242
 
Can't Buy Me Love 262
 
Part Three The Financial Cold War 271
 
Chapter 6 A New Cold War? 273
 
A Close Call 277
 
Fly Me to the Moon 279
 
Tax Me If You Can 284
 
A War of Words? 291
 
Geo-economic
 
Warfare 294
 
Chapter 7 The Role of Markets in the 21st Century 307
 
Selective Efficiency 310
 
What Happens When Competition Dies 313
 
Wrong Incentives 318
 
Bubbles and Cycles 321
 
Funny Money 328
 
We're All in the Same Boat 342
 
Chapter 8 Avoiding the Thucydides Trap 343
 
Admitting the Problems 345
 
A New Bretton Woods? 350
 
MAD for Markets 362
 
It All Starts with Leadership 365
 
Afterword 369
 
Cast of Characters 381
 
Bibliography 399
 
Notes 423
 
Index 453

About the author

James A. Fok is a veteran financial and strategic advisor to corporations and governments. He served as a senior executive at Hong Kong Exchanges and Clearing (HKEX) during a decade of rapid internationalisation in China's capital markets. Prior to that, he worked as an investment banker specialising in the financial services sector.

Summary

A groundbreaking exploration of US-China relations as seen through the lens of international finance

Rising tensions between China and the United States have kept the financial markets on edge as a showdown between the world's two largest economies seems inevitable. But what most people fail to recognise is the major impact that the financial markets themselves have had on the creation and acceleration of the conflict.

In Financial Cold War: A View of Sino-US Relations from the Financial Markets, market structure and geopolitical finance expert James Fok explores the nuances of China-US relations from the perspective of the financial markets. The book helps readers understand how imbalances in the structure of global financial markets have singularly contributed to frictions between the two countries.

In this book, readers will find:
* A comprehensive examination of the development of financial markets in both China and the US, as well as the current US dollar-based global financial system
* Insightful observations of the roles of technology, innovation, regulation, taxation, and politics in the markets, and on their resulting effect on US-Sino relations
* Thorough explorations of the role of Hong Kong as an intermediary for capital flows between China and the rest of the world
* Suggestions for how, balancing the many varying interests, policymakers might be able to devise effective strategies for de-escalating current Sino-US tensions

Financial Cold War is a can't-miss resource for anyone personally or professionally interested in the intersection of economics and international relations, financial markets, and the infrastructure underlying the international financial system.

Product details

• Authors: J Fok, Ja Fok, James Fok, James A Fok, James A. Fok
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 31.12.2021
• EAN: 9781119862765
• ISBN: 978-1-119-86276-5
• No. of pages: 512
• Subjects: Social sciences, law, business > Business > Economics; Makroökonomie, Volkswirtschaftslehre, Economics, macroeconomics, Finanzökonomie, Financial Economics, Internationale Ökonomie u. internationaler Handel, International Economics & Trade