The coronavirus outbreak is likely to become an important element in future US-China relations. Recent events have focused the world's attention on the fact that China's political system is failed. Initially, the Chinese government did not want to take the epidemic seriously. Then, Chinese diplomats tried to conceal the extent of the outbreak, spreading disinformation about the number of infected cases. Moreover, some doctors who had tried to warn of a new virus were accused of spreading rumours and even arrested. As we can see, China's vertical power structure with its committees was completely unequipped to deal with such an emergency situation. Thus, China became not only a center of the infection but also a threat to the whole world, underreporting its real coronavirus statistics. Besides, social media in China was spreading stories that the pandemic had started in other countries, including the United States. Now it is confirmed that the сoronavirus infections have begun cropping up in Wuhan, China. While the rest of the world has no time to pursue answers to important questions about Beijing's mishandling of the coronavirus outbreak and spreading disinformation, they still have to be answered. The relations between the two world's largest economies deteriorated well before the pandemic, due to the trade war. The US-China trade war turmoil is likely to continue when the epidemic comes to an end, but the number of China’s allies will most likely decrease. Only few countries will be able to forgive the Chinese such a “gift” to the whole world. Now the government is trying to draw attention to the US coronavirus response, thereby diverting attention from the fact that China is responsible for the start of the coronavirus spread and its careless approach to the problem. In general, China is acting in an indiscreet and irresponsible manner with respect to the entire world. This will hardly help the country replace the United States as a global leader. The world does not need such a leader!
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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