Washington/ Beijing: Just as U.S. President Donald Trump signalled his intent on signing a trade agreement with China, there are signs of an impending new war between the two countries. Reports in the international media suggest that even though the trade war might have temporarily stopped, but both the countries are preparing for a huge war on an economic level. The anti-China group in the U.S. is working towards it and it is being claimed that the main motive behind this is to curb China’s growing influence in the finance and investment sectors.
Two months ago, China’s former Minister of Finance had warned about an economic war flaring up between the two countries. ‘Economic war will be the next stage of this prolonged rivalry between America and China. Legal actions, banning specific Companies for various reasons are the core aspects of this economic war. This has become clear by the recent bans imposed on ZTE and Huawei’, said the former Minister of Finance, Lou Jiwei.
The U.S. parliament is about to bring in a new bill named ‘Equitable act’. The leading senator of Republican party Mark Rubio, along with five other senators, have shown their support for this bill. The bill includes a provision which mandates the Chinese companies that are listed on U.S. stock exchange or invest in the U.S. to provide all the information of their business dealings and maintain financial transparency. Currently, 172 Chinese companies are listed on the US Stock exchange.
Chinese companies have invested almost 2 trillion dollars in U.S. share market, finance sectors, as well as investment sectors. If the U.S. parliament decides to approve the law against Chinese companies, it would have a direct impact on the 2 trillion dollars of investment.
However, Chinese media and a few Chinese analysts have said that the companies can withdraw their investments from the US at any time. Therefore, the bill in the American parliament and China’s response towards it may flare up an economic war, as per reports in the media.
The economic war between these two countries is vehemently opposed by a group in the U.S. comprising of the leading companies in the country. Against the background of the presidential elections towards the end of this year, none of the parties or candidates would want to upset the leading companies of the country.
However, the media has warned that Donald Trump’s policies for China and the role of the people close to him, the possibility of an economic war between the two countries cannot be denied.
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