The Sino-US trade war has reached the most critical crossroads. Safe-haven assets such as gold, US dollars, and Bitcoin are all at high levels, and all industries are depressed.
In the past, many people regarded the Sino-US trade war as the same as the Soviet Union and Japan. The same thing is that they are all competitors. The difference is that the Soviet Union + Japan are not as strong as China today. Except for being slightly behind in cutting-edge technology, the comprehensive national strength has far exceeded that of the Soviet Union and Japan.
In the past, the Soviet Union had strong competitiveness in the field of heavy industry, and Japan had strong competitiveness in light industry. China is more like a hexagonal warrior, which can't be said to be good in any place, but there is no problem anywhere.
The global liquidity contraction is becoming one of the important consequences of this trade war. As major central banks around the world adopt tight monetary policies and gradually increase trade barriers, the slowdown of global capital flows may bring more instability. For financial markets and international trade, it means that we have entered a period of low growth and high uncertainty.
As Trump said, China and the United States can solve all problems in the world by joining forces. If they are united, all industries will prosper, and if they are divided, all industries will be ruined.
