Louis Gave, one of the finance world’s top China experts and the founding partner and CEO of Gavekal Research, is “concerned” about the heated rhetoric that is being exchanged between the US and China since the election of Donald Trump.
During his Senate confirmation hearing on Capitol Hill a couple of weeks ago, Donald Trump’s pick for Secretary of State Rex Tillerson gave China no quarter when asked about the rising superpower’s current activities in the South China Sea. “We're going to have to send China a clear signal that first, the island-building stops,” declared Tillerson. “And second, your access to those islands is also not going to be allowed."
On Monday, President Trump’s Press Secretary Sean Spicer backed up the now confirmed Secretary of State Tillerson’s comments, warning China that the US will “defend” American and international “interests” in the South China Sea.
China’s response was an editorial in a state-run newspaper that declared the US would need to “wage war” to back up their tough talk.
Speaking to Jonathan Roth on RiskHedge Radio, Mr. Gave sees this as a developing clash between two world leaders—President Trump and Chinese President Xi Jinping—who are both committed to making their respective nations great once again. The end result may be a complete upending of the global economic system.
Listen to the full podcast (19:44) by clicking the play button above.