US Banks' China Ambitions Dwindle Amid Layoffs and Reality Check

Wall Street banks, including Goldman Sachs and Morgan Stanley, are scaling back their expansion plans and profit goals in China due to a deteriorating geopolitical climate and the increasingly authoritarian direction of President Xi Jinping. The banks are also considering more drastic job cuts, with some already having let go of over 100 China-focused jobs since September. The uncertain outlook has prompted bank executives to increase scrutiny of credit and market risks, and to question their liquidity and the potential for clients to be ensnared by US sanctions. Despite the challenges, many banks are publicly stating that China is still a massive opportunity and they have no plans to pull out.