US-China Tensions Simmer Even as Phase One Deal Review Called Off - Forex News by FX Leaders
US-China Tensions Simmer Even as Phase One Deal Review Called Off

US-China Tensions Simmer Even as Phase One Deal Review Called Off

Posted Tuesday, August 18, 2020 by
Arslan Butt • 1 min read

Even as global markets cheer the latest decision of the US and China to delay their review of the phase one trade deal, taking it as a positive step towards dispelling some of the tensions, other developments indicate that tensions between the two world leaders are far from over. On Monday, US President Donald Trump announced a proposal to offer tax credits to companies relocating their manufacturing out of China and back into the US.

Trump made these comments during a campaign speech while addressing his supporters at Minnesota and added that his government would also prevent those companies who outsource to China from being considered for federal contracts. He also referred to a recent executive order he signed last month when he stated, “We will end our reliance on China, we will make our critical drugs and supplies right here in the United States.”

Meanwhile, the Trump administration has imposed fresh restrictions on Chinese tech major Huawei, making it more difficult for the company to purchase chips produced by American companies. In addition to making it more challenging for Huawei to do business with American companies, the US government has also urged its allies across Europe and other parts of the world to drop Huawei from their plans for rolling out 5G networks, alleging that its technology is used by the Chinese government to spy on other nations, their businesses and citizens.

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