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China’s coercion will undermine economic leadership

Wednesday, May 12, 2021

Significance

Foreign governments and multinational business will welcome this but will view it with justified scepticism, given Beijing’s record of using economic coercion to promote its political interests.

Impacts

  • China will become more open in key sectors such as finance, oil and gas, and automobiles.
  • Large parts of China’s economy will remain inaccessible in practice to foreign investment.
  • Beijing will continue cautious support for increased international use of the renminbi.

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