The Darkest Chapter of US-China Relations

02 July 2020

    US and China relations are headed for a worsening, as both powers have made it clear they are ready to fight one another in numerous ways.

     

    An already rocky relationship of trade disputes and technology competition have been further hit by the blame-game of the coronavirus origin and now the new-found national security law of Hong Kong, imposed by Beijing.

     

    With the US elections underway, concerns grow. If Trump is reelected, Washington’s position of threat and power-play with regard to Beijing will remain, and it is unclear where it may lead.

     

    “There’s a lot of room for escalation here. I think that it’s, by now, quite clear that we’re in for the darkest chapter yet of U.S.-China relations,” Todd Mariano, director for U.S. at Eurasia Group, told CNBC.

     

    “We’re seeing moves now more on the technology and export front. I think the troubling sign is simply the multiplicity of fronts at which the two countries are fighting or preparing to fight,” he said.

     

    Investors are keeping a close eye on the situation, as it is likely to take major tolls not only on USD/CNH, but also on NASDAQ and S&P500.


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