The State of Cross-Border Finance

Comments from an Address at Camphor Tree Forum at Harvard University

The relationship between the US and China, which has defined the global economy, for 20 years, appears to have reached a crisis point. Where are we headed and what can be done?

These remarks are selected from an address that will be delivered by MarcumBP's Co-Managing Partner, Drew Bernstein, at the Camphor Tree Forum at Harvard University on Saturday, September 14th, 2019.

"If you read the headlines today, the relationship between the United States and China appears to be in a state of perpetual crisis. Multiple rounds of trade talks have broken down in failure and recriminations. America is imposing tariffs on an ever-growing list of goods. China has curtailed purchases of American farm products, even as its domestic pork prices spiral upwards. There is talk of a 'Silicon Iron Curtain' crashing down as security concerns lead to a divergence in technology standards across a hardened America-China axis. And multi-nationals are actively considering to what extent they need to rewire their entire global supply chains given the uncertainty of increasing trade barriers and tit-for-tat targeted sanctions."

"As a professional who has spent the past three decades deeply immersed in helping facilitate cross-border investment and capital markets transactions, this trend is of significant concern. However, I believe that the substantial benefits and opportunities of constructive engagement between the world's two largest economies may be overlooked. China and America each offer things that neither country can achieve on its own, and both have a significant vested interest in sustaining the best elements of the global economy. While the challenges are real, it is unlikely that the most significant problems facing us today can be solved without a viable working relationship between these two essential nations."

"Today, I would like to speak to you about the impact of the current environment on cross-border M&A, the IPO market, technology investment, and the balance of trade. But more broadly, I would like to encourage a dialogue about the future of this economic colossus known as 'Chimerica' and what steps need to be taken to reset the relationship based on fairness, accountability, shared interests, and mutual respect."

To obtain a copy of the presentation, please contact Drew Bernstein at Drew.Bernstein@marcumbp.com

The opinions is in this article and the presentation reflect those of the author and not those of Marcum Bernstein and Pinchuk or Marcum LLP.