economic commentary

December 31, 2018 - Geopolitical Risk with China Escalating

Trade tensions, particularly between the United States and China, continue to dominate world headlines. Significant tariffs remain in place between the two countries while they attempt to negotiate an agreement on a trade deal. Dealings became even more tenuous when a top executive of Chinese tech giant Huawei Technologies was arrested in Canada at the request of the United States as they sought her extradition to the U.S.

Trump is now contemplating issuing a national emergency executive order that would stop American companies from buying equipment made abroad by foreign telecommunications companies. Although it is being communicated as a threat to national security, it appears to be directly related towards Huawei Technologies and ZTE Corp., two of China’s biggest network equipment companies. This will make trade discussions even more contentious than they already are.

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