Analysts fear geopolitical tensions would intensify if Trump’s tough talks on China continues
In the wake of the coronavirus pandemic and in front of the November presidential political elections, President Donald Trump has raised his tough talks against the Chinese administration. International relations analysts say after Trump’s inconsistent efforts to be tough on China has increased fears over geopolitics tensions.
Since last year, when China and the United States started forcing further taxes on one another’s goods through trade war situations that sent shockwaves through the global market, and now the coronavirus crisis has only heightened the tensions between China and the United States.
As per Council of Foreign Relations, in 2019, tensions over technological supremacy with Beijing by the Trump administration propelled an aggressive campaign cautioning various nations not to utilize Huawei hardware to produce a 5G network. The United States claimed that the Chinese government was utilizing the Huawei company to spy, following which the trade war heightened. The Trump administration raised tariffs from 10% to 25% percent on $200 billion worth of Chinese merchandise.
The blame game intensified as the U.S. labeled China as a manipulator of money and due to which Trump administration increased on more Chinese products.
Recently, amid the coronavirus outbreak, the U.S. and China leaders had begun blaming each other on who was to be stated responsible for originating the pandemic.
Nicholas Lardy, a senior expert on at the Peterson Institute for International Economics, expressed that relations are clearly at its historically lowest point.
However, with the U.S. declaring constraints on semiconductors and other tech exports to legislation imposed by China to curb Hong Kong’s political freedom and military force, it has added to the growing tensions between the two nations.
There is a possibility of a decline in the trade relationship; however, it poses a major economic threat, especially when the world is facing the coronavirus pandemic and its aftermaths.
On Thursday, Trump stated that he is studying policies directed on “complete decoupling,” a term that means breaking the profoundly twisted economic relationships between the world’s two biggest economies.
His remark arrived in a tweet wherein he differed from Trade Representative Robert Lighthizer, who had sounded more assuring on China a day ere testimony to Congress.