Trump VS Biden

U.S. – China Relations at the front and center

Widely anticipated U.S Presential debates officially took place on September 29th 2020, featuring Democratic presidential nominee Joe Biden, whose also ex-vice president for Barack Obama running against incumbent current U.S President Donald Trump.  The elections have been placed as a sparking theme for worldwide business sectors and especially global markets.

An imperative topic seems to be taking a rather larger toll on the electoral voting making historic global rivalry U.S. and China relations at the front and centre of the 2020 elections, jittering global financial markets.

So far Biden is taking lead, enhanced with a diplomatic rule book that seems to be impressing even republicans, nevertheless A Biden administration is likely to maintain efforts to reduce American dependence on Chinese manufacture of critical goods and continue competing with China in strategic sectors such as Artificial intelligence but could be the end of the trade war fire ignited by Trump. In short, a democratic victory in the presidential election may mean continues competing with China, but in other ways than the confrontation that the Republicans have followed since Trump took over the White House.

But it is important to note that a Biden administration is committed to diplomacy and keeping global order, not war. Biden aims to work closely with allies, mobilizing them to counter Beijing’s expanding global influence. Looking back at the trade war, it had significantly weakened the global economy.

On the other hand, Trump’s “fighting for you” campaign aims to lure 1 million manufacturing jobs from China to the U.S by offering tax credits to American companies, with more proposals for other sectors of business-like pharmaceuticals and robotics.

Eventually, both administrations want to build US manufacturing that would lead to economic recovery, but at the same time, the differences lie in the way both candidates deal with the most sensitive issues, chief among them the US-China relations and US trade relations with other partners such as Canada and Mexico as well as the European Union. And the market is relatively encouraging towards the possibility of the Democrats winning.

Written by Ramy Abouzaid, ATFX (CY) Dubai Rep Office Head of Market Research.

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