U.S.–China relations and cross-border capital flows: Is digital technology a “Buffer” or a “Booster”?

Key Points

• Digital technology impacts cross-border capital flows in U.S.-China relations, showing varying effects.
• Capital flows increased significantly with advances in digital technology, enhancing cross-border transactions.
• Analysis of historical data indicates that digital technology can act as both a buffer against economic tensions and a booster of capital flows.
• The findings imply that digital advancements may influence the future of international finance and diplomacy.