ONE illustration of how financial ties between the US and China are breaking down comes from the recent experience of private equity’s “placement agents”. These are companies hired by buyout groups to help them raise new funds.

When their salespeople try to persuade US investors to commit cash to funds that will strike deals in China, they are in some cases not only being rejected but also criticised for having even pitched the idea, said a senior Hong Kong-based adviser to the industry. Some have been told they are out of touch, tone-deaf and even unpatriotic.

They are making the pitch at perhaps the worst possible moment. US President Joe Biden has set out plans to ban some US private equity and venture capital investment into sensitive sectors in China. Sequoia Capital and GGV Capital have both announced plans to split their US and China businesses.