Interview
How covid-19 could change the financial world order
- The pandemic is projected to initiate a new chapter in financial history while questioning American leadership and signaling a potential shift in global power balance toward China in the long run.
- International pressure for reforming the global economic governance system is expected to grow, prompting efforts to establish a financial system less reliant on American standards, norms, and companies.
- China anticipates increasing its influence over global capital flows by leveraging its expanding financial reputation, a trajectory expected to be accelerated as the world recovers from the crisis.
- The future global financial structure is predicted to potentially fragment into competing spheres of influence, with significant uncertainty regarding whether collaboration between them will occur or if the system will become costlier, more dangerous, and harder to navigate.
- While China is not expected to become the dominant global financial force immediately, it plans to make significant gains during the post-pandemic economic reopening, though trust barriers remain due to global concerns regarding transparency and intentions.