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US and China, More than a Trade War, Our Views

US and China, More than a Trade War, Our Views

We must keep things in perspective. The US and China are challenging each other in tech, the sea lanes in the South China Sea and influence on the world stage. For decades China has expanded its influence in the Far East with an Navy that is preparing to challenge both Japan and the US for rule of the sea lanes in the region. The South China Sea is a waterway that sees about 5 trillion dollars of trade and energy shipments – all passing through each day, 24 hours as this trade does not sleep. Also, China is now rolling out 5G and is challenging the US for the global tech seat – and in some cases China is winning.

Also, the US trade deficit is with a hand full of countries, with Germany and China being the biggest contributors. China wants to become a key player on the world stage and this means trade, technology, A.I. to be more specific, and in the future, it will of course flex its political muscles.

We do not think there will be a trade deal, China wants Trump out of office, and the US wants to disrupt China tech and military expansion.

So we see the internet and most global systems breaking up, then forming small regional groups, with a European group, a China/Asia group, and a US lead group. The world might look more like it did in pre-WWII, much like it did in the 1930s – nobody was in charge and treaties held small groups together. 

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