US-China relations remain cold more than one year on since President Joe Biden assumed office. The Xi-Biden summit in November 2021 failed to produce any major breakthroughs, likewise for high-level meetings in Anchorage, Beijing, and Rome.
Critical trade issues between the two nations remain unresolved, and China’s refusal to oppose Russia’s invasion of Ukraine only adds to the political tensions.
Andrew Winskill, head of institutional trading at Highview Management, monitors China closely, and has a track record has a track record of accurately predicting trends in the country.
“China seemingly has no desire to build closer relations with the US,” Winskill said. “A willingness to sit at the table seems to be there from the Biden administration, but this is not reciprocated”.
Tensions may not be as high as during the years of ex-President Trump’s trade wars with China, but the thawing of relations has been slow. Talks so far have only produced the promise of further talks, and solid solutions are few on the ground.
Relations took a further turn for the worse when the Biden administration announced its diplomatic boycott of the Beijing Olympics.
Beijing in turn announced a “no limits” partnership with Russia, pointing to a return of the divisions of the cold war. With Russia facing heavy sanctions from the majority of its trading partners in the west it will become ever more reliant on business with China.
Since Vladimir Putin launched military action against Ukraine on February 24th, western nations have been applying the squeeze on his country’s finances. The Russian economy has so far proved resilient, but is yet to see any major drop in demand for oil and gas from Europe. Plans are already being put in place to reduce dependency on Russian commodities, which are likely to have a significant impact when implemented.