September 26, 2022
Bloomberg recently published an article featuring Mark Williams, Master Lecturer of Finance, on the risks of doing business in China with rising tensions over Taiwan.
With banks still facing complications over the Russia-Ukraine conflict, global insurers have been reluctant to write policies for firms planning to invest in China and Taiwan. Political risk coverage prices have increased drastically with these tensions, especially with the possibility of China invading Taiwan. Mark adds that,“Political risk around potential US sanctions and the likelihood that China would respond by restricting capital flow has kept risk managers busy.”
Withdrawals from China could lead to major setbacks for U.S. firms after investing billions of dollars into financial markets, especially with these recent threats.