Monday, March 14, 2022

WW3 in the making?

 

China is feeling that most of the western world is their enemy. Not surprising since the previous US president accused them of stealing from the US, hit them hard with trade tariffs, publicly demonized the Chinese people and to top it all off he accused them of creating Covid. Then the EU pretty much went along with all of that.

Our new president has done next to nothing to change the mess in relations with China that the old one left behind (shame on you Biden!).

So where does that leave us?  China has started to cozy up with Russia to try shore up energy and other resources so as to reduce the existential threat it feels is coming from the West. And now, with the Russian created mess in Ukraine not getting any better, the West is starting to talk about a second tier of sanctions. This time sanctioning those countries that support Russia - such as China. 

Tell me that won't further raise the hackles of the Chinese!

China's economy, of which 19% is exports, is already hurting due to low trade levels.  Sanctions against China would be adding salt to the wound. And, possible sanctions against imports of high tech services and items (e.g. EUV lithography systems from ASML) could greatly add to the hurt.



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