George Soros—Liberal billionaire—recently warned that the U.S. and China, the two largest economies globally, are trapped in a “cold war that can soon transform into a hot one.” His remarks came when financiers are progressively more worried about a stern economic drop down, with an extended US-China trade war impacting business and consumer sentiment. Referring to Trump’s decision to tag China as a “planned” competitor in late 2017, Soros stated this approach was “quite simplistic.”
“An efficient policy towards China cannot be lowered. It needs to be far more detailed, sophisticated, and practical, and it should contain an American economic retort to the BRI (Belt and Road Initiative),” he stated. Soros—a critic of President Donald Trump and major Democratic donor—was addressing at the WEF (World Economic Forum) in Davos, Switzerland. Soros further added, “Regrettably, Trump appears to be following a diverse course, make allowances to China and announce victory while renewing his assaults on the U.S. allies. This is likely to undermine the U.S. policy purpose of trimming China’s excesses and abuses. The truth is that we are currently in a cold war that intimidates to transform into a hot one. Reportedly, Washington and Beijing have been trapped in a tit-for-tat trade spat for several months.
Speaking of the ongoing trade war, recently economists said that China might be ready to purchase more US products, but that is not what really matters. Between an ongoing trade dispute amid the U.S. and China, reports surfaced that China has proposed to buy more of US products in the upcoming years to lower the two countries’ two-sided goods trade unevenness. Such a move might address one of Trump’s stated aims for the U.S.-China trade conciliations, but experts believe it is addressing a metric that does not even matter very much.