The US And China Are Back At It

Unsplash/Alejandro Barba


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As coronavirus slows down globally (kind of), the US and China went right back to butting heads on Wednesday. Remember when trade tension was our biggest fear? The Stars and Stripes played the bearers of bad news to Hong Kong, telling the Special Administrative Region it was no longer considered autonomous from China. In America’s eyes, anyway.

Is that bad? Well, it depends on who you ask. For citizens of Hong Kong that have been fighting for autonomy? Yes, it’s bad. For China? It means the US acknowledges that the newly proposed Chinese national security law is too strict.

So strict, in fact, that the US doesn’t consider Hong Kong a separate entity, and can, therefore, impose sanctions on it against China’s wishes. So also bad. It’s bad news for everybody. 

China was so unhappy with the decision, that it went as far as to tell the US that if any sanctions were imposed on Hong Kong that it would retaliate with sanctions of its own. Trade War Part…is anyone keeping track anymore? 

Meanwhile, in North America…

Things won’t be getting any more congenial between the US and China, as Canada agreed to continue with extradition proceedings for Huawei CFO Meng Wanzhou.

Meng, the daughter of Huawei founder Ren Zhengfei, has been under house arrest after being apprehended in Vancouver at US request due to allegations of her conspiring to defraud banks into breaking US sanctions by selling technology to Iran since as early as 2013. Seems like a lot of work to steal technology, but what do I know? 

Huawei, and by proxy, China, has been blacklisted by US businesses due to the belief that the country was stealing technology and defense secrets and giving them right back to Beijing. And you know the US doesn’t take kindly to spying.

The bottom line

Just when you thought you were out, they pull you right back in. Given that we’re not even out of the woods on coronavirus, the fact that tempers are flaring between the US and China already doesn’t bode well for the future.

Hong Kong on the other hand, in the midst of a battle for freedom and national sovereignty, now finds itself a pawn trapped between the US and China until at least next year, when Donald Trump can reinstate its certification, like a child in a marriage that’s past its prime. On the bright side, at least they’ll get two Christmases. 

Water Cooler Talking Point(s)

💧 “They’re always fighting, just break up already, you’re ruining happy hour.” – China’s best friend (AJ, The Water Coolest HQ)

 

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The Water Coolest is a daily business newsletter consisting of business news, financial advice, and unfiltered commentary. Delivered fresh in your inbox every morning so you're ready to snap necks and cash checks. Written by Tyler Morrin, AJ Glagolev, Nick Ellis, and Ian Barto.