In a lot of the earnings calls that we’ve been listening to, US executives have been having a bet each way on Cold War 2.0. They’ve been trying adhere to US demands without offending China. We see this mindset as a halfway house towards something more hawkish. From the FT today:
In an America that has rarely been more divided, one area of solid bipartisan consensus remains — on the need to “do something” about the threat China poses to the US-led global order. Even those who despise Donald Trump have mostly cheered the president on as he upends more than four decades of US policy on China.
The most important underlying reason for this support is the fact that Mr Trump was not the one who changed the terms of engagement. China’s President Xi Jinping did that first.
