Vanguard Cuts Ties with China Amid Escalating Tensions and Investment Climate Concerns

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Vanguard, a global investment giant, has made a decisive move to withdraw from China by finalizing severance agreements with its remaining Shanghai staff, including country head Luo Dengpan. This exit follows a series of disputes, and China’s retaliatory measures, such as exit bans, raids, and arrests of foreigners, raise concerns about its investment climate.

How China can reassure nervous foreign investors before it’s too late

China’s President Xi Jinping and his US counterpart Joe Biden look set to meet in San Francisco later this month. They will no doubt focus on the Taiwan issue, the most significant challenge to a stable US-China relationship, but how to manage the “securitisation” of the bilateral economic relationship should also be a priority.
Beijing has accused Washington of playing up concerns about the security implications of their economic ties since 2018, when the Trump administration launched the trade war. Biden’s administration has escalated it into a chip war aimed at stifling China’s progress in cutting-edge technologies.
To Beijing, Washington appears to “securitise” almost every aspect of economic ties, from trade and technology to investment, in the name of national security. TikTok, a short-video sharing platform, is under closer scrutiny because of its Chinese ownership, and security concerns have even been raised about Chinese-made electric buses running in US cities.
Painting itself as the wronged party, Beijing maintains the US is solely to blame for everything that has gone wrong in the relationship.

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