The trade war has taken a new turn with further calls to “decouple” the global supply chains, as more US sanctions threaten to curtail the flow of electronic goods (1). Many nations are now calling for more domestically produced essential goods (2) as they are pressured by the US to cut economic ties with China (3) and look for alternatives in India (4) and Southeast Asia.
Tensions are spilling over into the stock market with tightening regulations (5) and major US-based investors pushed to divest from China. This was largely due to the questions of ethics and human rights (6). Speculation of a voluntary delisting has hit the stock price of some major Chinese Megacaps (7) and has pushed China into a five-year independence plan (8).
The German Federal Intelligence Service has concluded that the WHO colluded with China to delay the release of critical COVID-19 information (9), prompting the US to terminate its relationship with the WHO (10).
China might not make it out of COVID-19 with its reputation intact (11), as more nations start to question the CCP's behaviour and investigate China's possible involvement in economic coercion (12) and manipulation against nations that subvert their national interests (13).
The shift from trade war to cold war could eventually lead to China either having its access to Western stock markets revoked or forced to adhere to higher standards of transparency (14) and to ensure the absence of governmental control (15).
Tightening Western regulations could see listings in Hong Kong’s exchange rise (16) as Chinese corporations look for accommodative platforms with access to foreign money. However, the laying of blame is likely to further exasperate fraying global connections (17) and frustrate attempts to maintain peace (18).
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Trump is right about one thing: The World Health Organization deserves some blame for the pandemic