“As Trump threatens a trade war with Beijing, companies around the world are all the more concerned with how they get money in and out of China,” said Raymond Qu, CEO of Geoswift, in a bobsguide webinar on August 30.
“Ultimately a trade war is not good for anyone,” responded Skyler Webster, product lead for Western Union.
“It slows both economies, it can slow down sales, increase cost and cause product to become less competitive,” continued Webster “It goes against everything the global economy stands for and depending on which side of the tariff you sit, these implications could be good or bad. Fintechs around the world should be prepared.”
If the world’s fintechs should be prepared, the Chinese government more so. Becoming more and more “smart”, Beijing is all too aware of the market risk it has exposed itself to by opening the country up to world.
“The US owes a lot to China,” said Qu, “and that makes the Chinese government nervous in case the US crashes, defaults and leaves a huge debt.”
Whether a crash or bounce would happen only time will tell, and matters are further complicated by the fact a no-deal Brexit seems ever more likely.
For Qu, that prospect should present an opportunity to the UK’s financial services to elevate their collaboration with China.