US-China relationship has gone steeply downhill – Danske Bank

Senior Analyst, Kristoffer Kjær Lomholt at Danske Bank, suggests that we have witnessed a concerning worsening of the US-China relationship as following a much celebrated visit to China by US President Donald Trump in early November, the US-China relationship has gone steeply downhill.

Key Quotes

“Following a series of events from mid-November to now, Trump on Monday night stated that China and Russia are attempting to erode American security and prosperity and that they are developing weapons that could threaten US critical infrastructure.”

“Following a period where imminent risk factors that could derail the global recovery were difficult to pinpoint, we now emphasise a heightened risk of trade conflict next year. Adding to fears is that Trump, going into the mid-term elections, seems to have wide backing at home for his confrontational course with China. Should the Republican lose its majority in the Senate or the House, it would also leave Trump with power only in the areas of foreign policy and trade.”