China-US Conflict Back to Haunt Market? - Kakiforex | Forex markets for the smart money. China-US Conflict Back to Haunt Market? China-US Conflict Back to Haunt Market?

February 27, 2021

China-US Conflict Back to Haunt Market?

 Tensions between the United States and China have lasted for several years. Negotiations after negotiations have been conducted but have not yielded significant results. Since the coronation of Joe Biden as U.S. President, the market has been expecting new rays.

However, trade and political ties between the two countries became strained earlier this month when China did not seem to like reports of two groups of U.S. aircraft carriers conducting joint exercises in the South China Sea.

Chinese Foreign Ministry spokesman Wang Wenbin said they would continue to take the necessary steps to ensure sovereignty, security and development interests.

The situation worsened when last week the United States decided to maintain the tariffs imposed on Chinese goods by the current Trump administration. But the White House insists it will review all national security measures implemented by former President Donald Trump, including a phase 1 trade agreement with Beijing. It was also reported that Joe Biden had follow-up talks with China.

Following a series of repairs, the Chinese Ministry of Finance on Friday decided to extend tariff exemption for 65 products imported from the United States, including timber and aircraft parts.

This item will take effect on February 28, until September 16, 2021. The product is exempt from tariff retaliation imposed by China on U.S. goods.

With this, the market expectation of tensions between the two largest economies in the world subsided after a trade war that affected the economy and many parties.