By: Farrah Khan
Given the recent the American ban on Chinese companies such as Huawei, China is willing to retaliate if Trump does not retract his ban. China views these bans as a threat to the global supply chain and overall global economy. The growing tension between the two countries have already contributed to the recent downdraft in global equity markets. The DJIA (Dow Jones Industrial Average), COMP (Nasdaq Composite Index), SPX ( S&P 500 Index) have all come down in the past weeks. This newly recent trend has also affected the Chinese markets as well. According to MarketWatch.com, these tensions may last throughout the 2020 election.
Both superpowers will need to break the negotiation deadlock in efforts to stabilize the global economy, if not both countries may suffer huge losses due to tariffs.
Read the full report from Marketwatch here.