The trade war between the United States and China has proven to be one of the most significant political, diplomatic, and economic events of the past decade. It has unleashed immense economic uncertainty on most markets across the world and more so, on the stock markets in the two concerned nations. Both the nations have traded harsh words for many months now, and the latest comments from the Foreign Minister of China must not have come as pleasant reading for many of the participants in the U.S. stock markets. The stock markets in the United States had been expecting a resolution in the trade war for some time, but the latest comments have thrown that optimism out of the window. It is now expected that the stock markets in the United States are going to have a weak opening following these comments.
Wang Yi, the Foreign Minister, and the Chinese State Councillor stated that the two nations are against at a crossroads with regards to a trade deal. The Foreign Minister stated that China has opened up considerably as an economy to the world as well as to the United States and hence that privilege should be reciprocated. He went on to slam the United States for having placed ‘unreasonable restrictions’ on China and wanted them removed. He added,
In a word, China’s efforts and achievements of reform and opening up in the past several decades have been widely recognized. They should not be deliberately ignored or denied.
Yi went on to emphasize that the trade war is a damaging exercise and is damaging both countries equally. The two nations are set to meet for another round of trade talks soon, and the latest comments definitely cast a shadow on the expected outcome from the meeting.
These are hugely important developments and are expected to exert further pressure on the ravaged markets. More often than not, such statements are often followed by retaliatory restrictions or tariffs from China, and that raises the tensions yet again. Over the course of 2019, the trade war between the two nations has had a massive toll on the markets, and many investors have started investing in precious metals as well as the Dollar. The idea is to protect one’s capital in stable assets and wait for the whole thing to blow over.