About this work
Trade links and portfolio investment gave different signals about economic separation from China in June 2023. Robin Brooks and Jonathan Fortun find little evidence of a material retreat in trade, while foreign direct investment excluding reinvested earnings remained resilient. Reduced nonresident portfolio flows instead pointed to investors cutting financial exposure, distinguishing risk reduction from a broader dismantling of commercial ties.
Abstract
Trade links and portfolio investment gave different signals about economic separation from China in June 2023. Robin Brooks and Jonathan Fortun find little evidence of a material retreat in trade, while foreign direct investment excluding reinvested earnings remained resilient. Reduced nonresident portfolio flows instead pointed to investors cutting financial exposure, distinguishing risk reduction from a broader dismantling of commercial ties.
Cite this work
Robin Brooks, Jonathan Fortun (2023). Global Macro Views: China De-globalization versus De-risking. Institute of International Finance.