USA-China rivalry in the age of de-globalization. An assessment of the security concerns posed by the delisting of Chinese companies on the US Stock Exchange

The globalization era that stemmed from the Cold War period is reaching a fork in the road and the argument is made for the slowing of this process and the shift towards de-globalization. Economic globalization blurred the national lines and brought about the multinational companies, which in turn brought technological advance and innovation. This advance in technology made the world much smaller and globalization very appealing. This system worked until a point where everyone was a beneficiary and world economies have seen the sharpest growth rate in history. However, when the first economic crisis arose in 2008, the USA was not the only loser, but everyone in this transnational economic environment felt the repercussions. At the first sign of capitalist weakness, globalization got blamed by governments around the world and the trust factor was diminished. This planted the seeds of de-globalization and the subject picked upon in this paper is the tug of war between the two super-powers: the USA and China. Who is the winner of this de-globalization era and more importantly, who stands to lose the most? This question will be thoroughly discussed from a historic and macro perspective as well as through a specific case study related to the de-listing of Chinese companies on the US Stock Exchange. This paper will bring forth arguments that both superpowers are winners and losers, with China being a step further by still looking attractive for global investors. Institutions and retail investors are seen as the biggest losers of this new form of rivalry. By employing a quantitative approach this paper will bring a fresh perspective on the effects of de-globalization through the Wall Street lens.