An expert claimed that worsening political tensions between China and other countries could be a significant risk to global economic recovery. He claimed that the quarrels could exacerbate the development of the China-US trade way and generate a worse scenario for the global market.
The CEO and chief investment officer of Concentrated Leaders Fund David Sokulsky claimed that growing tensions between China and other nations could significantly and adversely affect the global economy. He also noted that these could worsen the developments of the China-US trade war. He noted that there might be a quick escalation of disagreements in trade ways. These could exacerbate the state of the global economy.
The investor further discussed that the US, Australia, and European countries have been urging an investigation through an international inquiry against China regarding the origins and delayed sharing of information by China about the pandemic.
He also noted that economies still continue to prepare for their reopening after observing weeks of lockdown due to the pandemic. Political tensions might further disrupt recovery, and that countries have failed to accurately assess the damage that this could cause to the market, he said.
The world economy came close to a standstill last March since nations closed their borders and businesses in the wake of the pandemic. Some countries have since then blamed China for mishandling the outbreak. They have been calling for the government to compensate for the damage it caused. Others also opted for an international inquiry to determine whether China had the means to prevent the outbreak before it spread worldwide.
Beijing repeatedly rejected all the claims about China's mishandling of the situation. According to Chinese vice-minister Le Yucheng, China is also a victim and is not an accomplice to spreading the virus. Furthermore, he also noted that it is not the time for accusations and political manipulations since the outbreak still continue to disrupt the global economy.
The US then threatened retaliation against Beijing, including European Commission president Ursula von der Leyen calling for investigations on the disease's origin.
Sokolsky then noted that the rebound of the global economy from last year was due to improved trade negotiations. This included the signing of phase one of the China-US trade deal. He then suggested that there would be a quick rehashing of the trade war not only between China and the US but also China against other nations.
At present, Beijing is at war with Australia over Canberra when the latter's officials started asking for compensation investigations against Beijing for the pandemic. The Chinese embassy in Australia then responded that China is experiencing malicious slanders. It also announced that the allegations were false and that the claims were coerced by some politicians from North America to Australia.
