Short-term Geopolitical Goals Impacting Long-term Economic Outcomes

The paradigm shift has led to short and medium-term geopolitical goals driving decisions in both China and the U.S., which are adversely affecting long-term economic outcomes. The domestic circumstances in China, with a lagging economy, are fueling a growing geopolitical appetite. In the U.S., both parties agree on being tough and protectionist on China, especially in the lead up to elections, where technology export controls and trade tariffs are key focus areas. Despite slight variations, there's a convergence between the two sides on policies related to China.