September 6, 2019
The world’s two largest economies are “already in the early stages” of a second Cold War, according to Niall Ferguson, a senior fellow at the Hoover Institution at Stanford University.
Speaking to CNBC’s Steve Sedgwick at the Ambrosetti Forum in Italy on Friday, Ferguson said President Donald Trump was now in a position where he would be unable to prevent lasting damage to U.S.-China relations by de-escalating their protracted trade dispute.
That’s because the long-running trade conflict between Washington and Beijing was “not just about trade,” Ferguson said.
Instead, it had become a multi-faceted dispute, concerning technological and geopolitical issues.
“The good news is I don’t think they are destined for a hot war over the South China Sea or anywhere else, but I do think they are in a Cold War.”
“And I don’t think President Trump any longer has the power to turn it off by doing a trade deal — which I think he intends to do at some point between now and next year’s election,” Ferguson said.
This article was posted: Friday, September 6, 2019 at 5:30 am