9 The Capital War9 The Capital WarThe Military WarThe Capital WarChapter 7: US-China Relations and Wars2020-10-18JournalThe Military War9 The Capital WarThe development of Chinese currency and capital markets would be detrimental for the United States and beneficial for China.  So once again it seems likely that American policy makers will be forced to choose between a) trying to disrupt this evolutionary path by becoming more aggressive with their wars (in this case via a more aggressive capital war) and b) accepting that evolution will likely lead to China becoming relatively stronger, more self-sufficient, and less vulnerable to being squeezed by the US at the expense of US leadership in this area, especially over the next 5-10 years.  We are seeing some early signs of US moves to curtail Americans’ investments in Chinese markets and to possibly delist Chinese companies from American stock exchanges.  These are double-edged swords because while being marginally harmful to Chinese markets and listed companies they also weaken American investors’ and American stock exchanges’ abilities to be competitive, which will support the development of those in China and elsewhere.  For example, the Ant Group’s choice to list on the Hong Kong and Shanghai exchanges gives investors the choice of investing on those Chinese exchanges or missing out on those investments, which are listed there and not on other exchanges. Continue reading…