How are Chinese banks in the U.S. responding to decoupling?
U.S.-China relations have put the Chinese banks in an awkward position. They need to maintain their international presence but reduce the risks of exposure to the United States to prepare for the chance of further decoupling between the two countries – even under a Biden administration. To that end, we examined the U.S. operations of several of the largest Chinese banks. The goal is to discern the direction of operations and money flows to tickle out policy emanating from Beijing. To conclude, there has been surprisingly little change in the overall business of the Chinese banks in the U.S., which are playing the long game and continue to maintain relatively modest exposure to the U.S. market in their local branches.
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