Recent tensions between the US and China have raised concerns over global financial stability. The US has imposed stricter trade restrictions on advanced technology exports to China, while China has responded with export controls on critical minerals like gallium and germanium. These measures threaten to disrupt global supply chains, increasing costs for industries reliant on Sino-US trade.
Additionally, the US is encouraging allies to reduce dependence on Chinese manufacturing, pushing "friend-shoring" strategies. Meanwhile, China is promoting the yuan in international trade to challenge the dollar's dominance, though progress remains slow.
Financial markets are wary, as prolonged friction could slow global growth. Investors are monitoring potential sanctions, tariffs, and retaliatory measures that may escalate. Both nations must balance competition with cooperation to avoid destabilizing the world economy. For now, businesses and governments are preparing for a more fragmented financial landscape.