US President Donald Trump made a slew of announcements with respect to China on Friday evening.
NewsMobile analyses this speech and what does it actually mean for all the stakeholders involved.
What is the order about?
In a televised speech, Trump spoke about the relations between the US and China and raised certain important points. He said that China has always used the WHO to manipulate matters to its advantage including lying and misguiding the world during this pandemic.
He said that China has inflicted enormous sufferings on the people all around the world.
Also Read: NewsMobile Explainer: US withdrawal from WHO
He further added that China has over the years usurped US jobs, inflicted economic damages on the US, and stolen US intellectual property.
In this regard, he said that the US will appoint a commission to study Chinese companies in the US financial market and investigate any wrongdoing.
He also accused China of eroding Hong Kong’s autonomy and freedom and announced that the US will be scrapping the various trade benefits that the coastal city received date and will be revising a travel advisory for US citizens to protect them from the unfair and brutal regime in Beijing.
What does this mean for the US-China relations?
It will definitely lead to further deterioration of ties between the two countries who have been involved in a war of words since the time Trump took the oath of office in 2017.
Sharp exchanges, which started because of the trade wars between both the countries, have now escalated over the controversy surrounding the origins of the Sars-Cov-2 virus and China’s handling of the matter.
With the US economy in a state of complete shambles and the US Presidential elections approaching later this year, it is unlikely that Trump will reach out to China and make any sort of concession, especially with anti-China sentiment running high.
In his second term if re-elected, Trump may settle all pending issues in a manner that favours the US to a great extent.
This has been the practice till date. Trump normally lashes out at a particular nation, prompts them to come to the negotiating table and then finally a deal is arrived at.
Overall, at a time when the global economic growth prospects look dull, this will add yet another easily avoidable conflict that will further damage any sort of recovery.
What does this mean for India?
India will watch these conflicts closely. Till date, India has been wary of joining any particular camp and has been active in safe guarding its interests.
Any sort of instability in the global trade markets will impact India and it may only prolong the economic recovery process.
Another point to me made is regarding the hostility with China. It has been noticed that India and China have been working together to solve the issue of trade imbalance during the US-China trade war.
However, this has largely been unsuccessful with many issues which are yet to be sorted out.