Billionaire investor George Soros warned that the existing cold war between China and US that led to both nations imposing billions of tariffs on each other’s imports could intensify soon into a serious crisis if the current stalemate continues. His comments could not that have come at a worse time when already world markets are jittery about this situation turning into an economic crisis. He describes Trump’s labeling China as a strategic competitor as a little too simplistic as an effective policy needs to be adopted to combat the trade imbalance and only empty slogans will not help.
He insisted on a more consistent policy that is detailed and sophisticated enough to tackle the Belt and Road Initiative of China to further economic interests of America. Soros is a major donor of Democratic Party and a staunch critic of Donald Trump and he spoke these words during a private dinner during World Economic Forum at Davos. He said that the current cold war could soon become a hot one as Mr. Trump’s policy includes making concessions for China and declare this as small victory for him though it is undermining national policy of curbing the abuses and trade excesses by China.
Both USA and China have been stuck in a messy trade war for several months now and a truce has been declared for talks so a get-together was arranged in January at Davos for international leaders to set up a platform where both sides could discuss their issues before the deadline of 2nd March. But the delegation of White House staff cancelled at the last moment due to ongoing government shutdown. So the next meeting between representatives of both nations will happen when Chinese Vice Premier Liu will visit Washington during end of January. Soros also stated that if both the heads of state, Trump and Xi are out of power then there will be better cooperation between both nations.