Diplomatic relations between the US and China continue to deteriorate as the two countries disagree on human rights issues, the Russia-Ukraine war, and military strategy.
An analyst believes that the “new model” relationship established between Chinese president Xi Jinping and former US President Barack Obama is a thing of the past.
“The more or less cooperative relationship between the United States and China that has been there for 30-plus years is over and won’t be coming back anytime soon. I would say it’s a generational shift, in it’s true,” Dane Chamorro, head of Global Risk Analysis and Control Risks, told Yahoo Finance Live (video above.)
In 2014, Beijing suspended cooperation with a joint US-China cybersecurity team in response to a US court indicting five Chinese hackers on charges of stealing commercial technology from US companies for the benefit of Chinese competitors. , including state-owned enterprises.
Chamorro said national relations began to break down during that period, with no return in sight. “It’s not going back to the way it was before, kind of pre-2014, pre-Xi Jinping. That’s over,” he said.
The global pandemic has also strained relations, according to Chamorro. “[The] The Covid pandemic is a good example of a situation where normally before 2014, the US and China found, despite disagreements, a way to deal with that for the good of both and the rest of the world, and that didn’t happen. ,” he said.
Beijing and Washington have grown further apart over recent conflicts, including Xi’s alignment with Russia, Taiwan’s political status, and China’s military aggression. Chamorro agreed that “the future is a relationship defined by conflict. I don’t mean kinetic conflicts, but defined by friction and distrust.”
Potential tariff rollback
As part of policies to combat high inflation, the Biden administration is expected to announce actions to lift tariffs imposed on some Chinese imports.
However, Chamorro does not believe the rollback will happen until later this year due to elections in both countries. “I think we might see some rollback of tariffs maybe after the midterm elections. Remember, this is an election year in the US and it’s an election year in China. So it’s not a good time for either side to be exposed to their opposition.” he added.
Rebecca is a reporter for Yahoo Finance.
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