USA and China, the new cold war?
A great deal has been written on this subject and it’s clear this development of new order protectionism will hurt both countries. There is no easy solution as China needs USA demand and domestic manufacturing for assembly and components – think Apple products.
Yet, the country has clearly been benefiting from a trade surplus over many years. The USA’s insistence to rebalance seems to be going further than tariffs with measures against Huawei and ZTE.
Song Liuping, the chief legal officer of Huawei, says the U.S. adding the Chinese tech firm to its entity list is a “dangerous move” that is based on “speculation and political reasons without facts and evidence.” USA consumers will suffer off the back of tariffs with increased prices while investments could be weakened as the stock market loses confidence as cited by Apple and Nike.
It will be interesting to see what the next moves will be in this strategic game of the world’s largest economies.