China & the ending of an era

20 years on from China’s WTO accession, we have likely reached the high water mark of China’s global engagement – with deep consequences for the world economy

After several decades of integration and opening up, recent developments suggest we may have reached the high water mark of China’s engagement with the global economy. 

As examples from the past week or so: Didi announced its delisting from the New York Stock Exchange after its June IPO, with expectations of more Chinese delistings to come; China deleted Lithuania from its customs system (effectively banning its exports), and is organising a corporate boycott of Lithuanian firms; and China is preparing new restrictions on foreign investment in Chinese technology firms.

Until recently, economic tensions with China have been more of a shadow war.  Despite the noise of trade wars, trade and capital trade flows between the West and China have continued to grow to record highs.

But political choices, both domestic and international, are now shaping economic behaviours to a much greater extent.  China has an increasingly domestic focus; and the US, the EU, and others are taking a tougher stanc…