China’s Economic ‘Perfect Storm’ Accelerates Decoupling With US: Christopher Balding

As China can no longer offer investors a premium on returns to justify the risk of dealing with the Chinese Communist Party, money will keep leaving the country, accelerating U.S.–China decoupling; yet the decoupling will happen on U.S. terms and not to the liking of Chinese leader Xi Jinping, according to an analyst.

Unfinished apartment buildings in Xinzheng City in Zhengzhou, China's central Henan Province, on June 20, 2023. PEDRO PARDO/AFP via Getty Images

Money will keep leaving China as a diminished return on investment no longer justifies the risk of dealing with the Chinese Communist Party (CCP), according to Christopher Balding, an expert on the Chinese economy at the UK-based think tank Henry Jackson Society.

The U.S.–China decoupling will accelerate as a result, he said.