Round the clock, investors are blasted with trade tweets from President Trump. These tweets are meaningless to an extent, with only one intention to control the economic narrative to drive the stock market higher. So with trade optimism and stock prices at record highs levels, it seems like China is ruining the party on Tuesday morning.
New details are emerging from AP News of souring relations between China and the US — not exactly improving as per the tweets President Trump has recently unleashed right before the stock market opens and during the morning hours.
Chinese Foreign Ministry spokesman Geng Shuang accused the US of “economic bullying behavior” after US officials cited national security concerns in using Chinese equipment in US communication networks.
Shuang told reporters that Beijing would “resolutely oppose the US abusing state power to suppress specific Chinese enterprises with unwarranted charges in the absence of any evidence.”
“The economic bullying behavior of the US is a denial of the market economy principle that the US has always advertised,” Shuang said, adding the economic sanctions would “undermine the interests” of US businesses and consumers, especially in rural areas.
“We would like to urge the US once again to stop abusing the concept of national security,” Shuang said.
The Trump administration has intervened in communication networks, picking winners and losers over the last several years, all in the name of national security.
President Trump is gifting the buildout of US’ 5G networks to companies that are aligned with his administration, rather than letting the industry decide which 5G products are the best and most cost-effective. The administration is likely setting up for a complete ban on Huawei and ZTE 5G equipment in US communication networks.
Federal Communications Commission (FCC) Chairman Ajit Pai announced Monday that the agency, in an upcoming vote on Nov. 19, will likely ban all US carriers from using federal subsidies to purchase 5G equipment from Chinese companies.
“The concern is that hostile foreign actors could use hidden ‘backdoors’ to our networks to spy on us, steal from us, harm us with malware and viruses, or otherwise exploit our networks,” Pai said on Monday. “And there are mounting reasons to believe that the Chinese firms Huawei and ZTE pose an unacceptable risk to US national security.”
The FCC ruling could also force companies that operate communication networks in the US to swap out already installed Chinese equipment for other brands, and the move could cost smaller companies in rural towns more than $1 billion.
Despite President Trump’s tweets generating an illusion of warming ties between the US and China (all to pump the stock market), the decoupling of the world’s largest two economies continues.