Macroscope | Chinese stocks could be biggest winner of Venezuela fallout
Amid rising fears over an AI bubble and geopolitical strife, China’s push for self-reliance has left it more insulated from global storms
For some time now, global economic cycles and financial market trends have been less US-centric and more multipolar in nature. This might seem counterintuitive given the long period of “American exceptionalism” stemming from the US dollar’s role as the world’s leading reserve currency, America’s deep and transparent capital markets, huge natural and human resources and the dominance of its technology companies in global equity indices.
Deeper forces have been at play in the past several years, driven by far-reaching geopolitical shifts that have slowed the process of globalisation and challenged the Western rules-based international order. In 2019, Morgan Stanley said a “slowbalisation” trend was emerging whereby the global economy was becoming more decentralised, with more “trade among regional players and allies, and characterised by a shift from a few global economic powers toward multiple political and economic centres”.
US President Donald Trump is strongly in favour of a multipolar world. This is in part because he sees it as a convenient alternative to the liberal, multilateral global order that the United States itself helped establish and further entrenched following the end of the Cold War.
Rubio says US to control Venezuelan oil sales indefinitely