The Chinese Foreign Minister warns of a “new Cold War.”
The world’s two biggest economies ramped up their hostilities this weekend across really every issue you can imagine, from trade to telecommunications.
After the Trump administration increased the pressure on Huawei by tightening export controls on the Chinese telecoms group and its suppliers, tensions sparked between both nations.
US political attacks on China over the coronavirus and global trade matters “are taking China-US relations hostage and pushing our two countries to the brink of a new cold war,” said China’s foreign minister, Wang Yi, said on Sunday in the latest escalation in tensions between the world’s two largest economies, according to The Guardian.
“China has no intention to change, still less replace the United States. It’s time for the United States to give up its wishful thinking of changing China and stopping 1.4 billion people in their historic march toward modernisation.”
Braking it down
Why the U.S. is angry with China: The Trump administration has faulted China for allowing the coronavirus to spread beyond the origin city of Wuhan. It’s also criticized a proposed law that would expand controls over Hong Kong.
Why China is angry with the U.S.: The U.S. recently tightened restrictions on supplies to Huawei (one of China’s most important tech companies), citing national security concerns. It also added 33 more Chinese entities to a trade blacklist.
Bottom line: When President Trump launched a trade war with China a few years ago, most experts suggested it was less about specific tariffs and more about larger geopolitical battles. We’re starting to see those in action, reads a Morning Brew newsletter.