⚡The conflict between the United States and China is gaining momentum again⚡
— It seems that President Donald Trump enjoys keeping people on edge with his announcements on social media every Friday.
* Trump announced that China violated the recent agreement in Geneva, which the market welcomed with great relief.
“This morning, the Chinese Ministry of Commerce responded with equal force, rejecting Trump's accusations and asserting that the United States is the one that violated the agreement by imposing new chip controls and canceling Chinese student visas.
* It should be clear now to most market participants that, even if we see periods of short-term calm from time to time, the underlying dispute between the two global powers cannot be easily resolved.
* Discussions are resuming on whether Xi Jinping will call the American president this week to ease recent tensions, but this should not distract from the fact that the differences are so deep that they cannot be quickly resolved.”
* Given all the contradictory statements we have heard from the U.S. administration in recent months, I would be wrong to pretend that I know what the coming days will bring.
* There may be a shift in direction and an announcement of more talks, but there may also be a new escalation, including threats of imposing high tariffs.