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Concerning rise in US-China tensions - Danske Bank

The relationship between China and the US has quickly moved to a low point, taking a sharp turn from improved sentiment and apparent co-operation between the two nations in 2017, according to analysts at Danske Bank.

 

Key Quotes

 

“We have some concerns that Trump will take action over the next year that could trigger a tit-for-tat trade tension and worsen the co-operation on the important North Korean issue.”

 

“Adding to fears is that Trump seems to have wide backing at home for his confrontational course with China and that he may use the trade weapon in the run-up to next year’s mid-term election to gain Republican support. In addition, should Trump lose the Republican majority in both the Senate and the House, it would leave him with power only in the areas of foreign policy and trade.”

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