Markets ‘Tremble’ at the US-China Conflict, UAE Minister Says
Economic News: The UAE is among many other nations that tremble at the US-China hostile confrontation, said Anwar Gargash.
Anwar Gargash is the minister of state for foreign affairs of the Gulf country.
He said the competition between the two giants would continue and remain natural to a certain extent. However, they are desire that the rivalry does not shake what is already a weak international system.
The conversation, the global economy, spanning geopolitics, and the fight against coronavirus took place against the backdrop of ongoing tensions between the two superpowers.
Trump’s administration has blamed China for the spread of coronavirus, which China has forcefully rejected.
The U.S. presidential election is fast approaching in November, and anti-Chinese rhetoric is growing louder in Washington. The painstakingly-negotiated trade deal between the U.S. and China hangs in the balance.
On Monday, U.S. futures dropped on the back of a Fox News report that quoted Peter Navarro, the White House trade advisor, saying the China trade deal was over.
However, Peter Navarro denied making such a statement, saying his words were taken out of context. He added that the phase one deal remains intact. Markets recouped their losses following that news.
He explained that he was speaking about the current lack of trust with the Chinese Communist Party after they lied about the origin of the coronavirus and foisted a pandemic upon the world. His statement signaled that the trade deal was still intact, but trust was broken.
On Monday, Trump tweeted, “The China Trade Deal is fully intact. Hopefully, they will continue to live up to the terms of the Agreement!”
UAE’s strong ties with the U.S. and China
The delicate state of US-China relations remains a concern for the UAE, which has strong ties with both nations. The UAE has had a long-term military and diplomatic alliance with the U.S. It has also had growing economic relations with China, which became the world’s top investor in the Middle East in 2016.
Trade between the U.S. and China is vital to the global economy, from international supply chains and economic growth to the cost of essential goods.
Gargash said the UAE’s concerns over their hostile confrontation was a global concern. Almost everyone has huge investment, financial and trade relations with China.
Many countries worldwide recognize that the U.S. has the largest network of allies globally, and the UAE is an essential ally of the U.S. Therefore, the confrontation is worrying and it would like more cooperation between the U.S. and China.
According to the minister, there are challenges ahead, which they’re trying to manage but may soon become a major issue
Economists don’t see the two giants reaching phase two of the trade deal anytime soon. They have warned that continued tariff threats and tensions could stunt the much needed economic recovery from the coronavirus shutdowns.
The U.S. and China signed phase one of the deal in January. It posed that the trade war that had been ranging for over a year. But experts warn that even that deal could fall apart if relations between the two worsen in the coming months.
Gargash is aware of this and its potential impact on the UAE, which enjoys strong trade relations with both countries – whose currency is pegged to the USD.
Gargash said it was a balancing act most countries globally would have to deal with, hoping that the significant US-China relationship was stable.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!