Recently, the US and China are at each other’s throats to fight for the first in the world economy. In 2019, China won the first spot by making 2.5 trillion USD worth of exports while the US only made 1.64 trillion USD exports.
The ambassadors of both countries exchanged snarky remarks at the recent UN COVID-distanced meeting. China’s Ambassador Wang Yi took a jab at the US and said that such tough times increase the responsibilities of big countries. It is time to put the cold war mentality aside and think about humanity’s future.
This was actually directed at Trump and his Anti-China Campaign which is making the survival of China’s companies registered in the New York Stock Exchange a little difficult. China’s companies are now legally required to disclose their financial statements and audit record while such records are considered ‘state secrets’ by the China government.
Furthermore, China’s biggest chipmaker SMIC was it by US sanctions which make its equipment importing difficult as the companies selling their equipment to SMIC now require special licenses. The reason provided by the US Department of Commerce for these sanctions is that these microchips manufactured by SMIC can be used by China’s military and they pose a national security threat. Moreover, China originated social media apps, TikTok & WeChat, are also being threatened to close down due to security issues.
As Trump makes the functioning of China’s companies in US markets difficult, China’s new rising companies shift towards Hong Kong both in terms of import-export and stock exchange. While this anti-China campaign right now feels like a great initiative to make things better for America’s economy, it seems like a loss in the long run as China’s BRI will be completed by 2049 and its exports will increase much more than before.