A dangerous situation is forming as the trade truce “geopolitical freeze” between the US and China thaws.
The Geneva talks have not led to a reset in the US-China trade relationship, as some in the White House expected. Instead, China’s actions in one specific area, the export of rare earth metals, point to the economic war quickly accelerating, compounded by other moves, such as China exploring a mammoth deal for hundreds of Airbus planes, effectively blocking out Boeing. The deal could be inked by July, effectively punishing America for its trade behavior.
The Chinese are shifting their approach, adopting a new strategy to counter Trump’s ideas, thereby creating a new battleground between China, the US, global businesses, and the world economy that completely changes what comes next.
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