What caught our attention earlier this week was a tweet from Santiago Capital's Brent Johnson, who described markets were reflating as if "globalization" was back on the menu, further saying "it's not." Johnson went on to say the world is moving "towards two supply chains, not one."
Johnson's view of a fractured global economy that is deeply bruised at the moment was reiterated by Chinese state media Thursday, who said some damage from President Trump's trade war is "beyond repair."
Reuters, quoting an editorial via the government-backed China Daily, said it viewed "worrisome signs" Washington's decision to limit visitor visas for members of the Chinese Communist Party and their families.
"Even if the incoming administration has any intention of easing the tensions that have been sown, and continue being sown, some damage is simply beyond repair, as the sitting U.S. president intends," the paper added.
Relations between the two countries are being shifted to "a dangerous path," the editorial warned.
Taking a look at the gross Sino-US trade flows, notice how the trade war resulted in a rapid drop in trade between both countries starting around 2H18.
Earlier this year, UN Secretary‑General Antonio Guterres, speaking to the General Assembly in September, said the world must do everything to prevent a new Cold War.
"We are headed in a very dangerous direction," he said.
The question that should be asked is that if China is transforming from a trade partner to an enemy of the US.
It's still unclear whether a Biden presidency would bring a dramatic shift in trade policy between both countries. This week, Biden said he would not remove existing Chinese tariffs set by the Trump administration.