The Big Take
Wall Street’s Ambitions in China Run Into a Rising Firewall
Tensions and tough new rules prompt US and European firms to curtail risks — and risk losing business — in world’s second-largest economy
WATCH: Wall Street Banks Are Ringfencing China Operations
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One of Wall Street’s biggest banks stopped briefing the head of its subsidiary in mainland China on sensitive company strategy, so the government can’t eavesdrop or demand details later.
At nearby outposts for other US and European banks, executives are spending tens of millions of dollars to locally house financial data and set up on-site internal controls. Some units are even looking at reshaping balance sheets to stand separate from parent companies.