Seems Like US and China Will Drift Further Apart, Before Moving Closer - Forex News by FX Leaders
The Taiwan president after the election

Seems Like US and China Will Drift Further Apart, Before Moving Closer

Posted Wednesday, May 20, 2020 by
Skerdian Meta • 1 min read

Since Donald Trump ran for President, China was one of the main issues of his candidacy. When he became president of the US, he started with China first, opening a trade war by placing tariffs, as we know. But, thy reached a trade deal called phase one which they signed in January, which helped the sentiment in financial markets. But, with the coronavirus breakout the two giant countries are drifting apart again.

The US will likely take action on China regarding the spread of the coronavirus and the cover up from China. Now, comes the Taiwan problem. Taiwan elected the president in January and the US congratulated her. But, China is furious at Pompeo’s congratulatory message to Taiwanese president, Tsai Ing-wen, on her inauguration. They made some comments earlier, as below:

  • Vows retaliation over Pompeo’s message to Taiwan’s Tsai
  • US behaviour seriously violates One-China policy
  • Expresses firm determination to realise reunification
  • Says that Taiwanese independence is a dead-end

There have been a lot of firsts when it comes to the Trump administration and yesterday saw the first time that the US Secretary of State offered congratulations to Taiwan’s president on her second-term victory and inauguration. This means that even after the coronavirus, the world economy will continue to suffer the clash between two giants.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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