The tension between the US and China is returning and is still growing. If someone hoped that everything would end as a result of the coronavirus epidemic, a cold shower awaits him. We are still threatened by a new cold war.
USA vs. China: the rivalry of the powers continues
Yesterday, thousands of people protested in Hong Kong against limiting the region’s autonomy. The point is that China wants to impose on the city its regulations on so-called national security.
In response, the US threatened China with sanctions.
It is worth noting that these are another large demonstrations in Hong Kong that took place after months of relative calm. Earlier such protests were organized in the second half. last year.
Today, however, it is still unclear what the shape of national security regulations will be. Apparently, the draft law states that, in particular, terrorist, separatist and subversive activities as well as foreign interference in the affairs of the region are to be banned and combated. Enforcement is foreseen in Hong Kong.
In practice, however, this is supposed to serve to limit or lift the autonomy of Hong Kong, which was annexed to China in 1997.
The tensions will probably result in further economic sanctions. White House Security Advisor Robert O’Brien admitted to the media on Sunday that all this will cause the US to impose sanctions on Hong Kong, but also on China.
In response, Chinese Foreign Ministry spokesman Zhao Lijian said the People’s Republic of China would resort to retaliation. Beijing recognizes Washington’s steps of this type as an attempt to intervene with the United States in Middle Kingdom affairs. A strong protest was also given to the United States administration against O’Brien’s words.
How will this affect you? BTC?
The above is another stage of competition between the USA and China. However, it may have a positive impact on the BTC course. Before Bitcoin he was already gaining when the US waged a currency and trade war with the Middle Kingdom.
– There may be a currency war in which every central bank will want to devalue its currency – said Naeem Aslam, chief market analyst at Avatrade. – After another trade war between the US and China, the yuan will weaken significantly – added.
If this happens, Chinese investors will have another reason to run away in kryptowaluty.