The flare-up in tensions between the U.S. and China over the weekend points to deteriorating trust between the world's two largest economies, analysts said.

KEY POINTS

“The root cause of the tension is due to a lack of mutual trust,” Larry Hu, chief China economist at Macquarie, said in a note Monday.

Hu and other analysts describe the announcements of the last few days as a “misperception” on both sides.

“On the specific episode the market is focused on, the two sides may still return to the table to find a short-term fix. However, it won’t be a lasting solution,” said Jianwei Xu, senior economist for Greater China at Natixis.

  • peteyestee@feddit.orgEnglish
    52·
    18 hours ago

    Do you ever wonder how you would react to another country going to war with America?

    • LifeInMultipleChoice@lemmy.world
      8·
      16 hours ago

      Why would a country like China want war with the U.S. They are on the up and up, taking over large swaths of the future markets in vehicle production, energy storage/accumulation, and have a large workforce. The U.S. has AI as it’s one edge at the moment, which everyone is wondering how much it will collapse down to like 3 companies and profitability be low for many companies.

      It isn’t in China’s best interest.

      Not to mention the soft power vacuums the U.S. has opened around the world that China can start picking up if they find it in their interests