Just when the Asian markets saw a spark at the end of the tunnel, that was when the governments worldwide decided to halt all activities. All activities were forced to be stopped to contain the rapid spread of the coronavirus.
Markets across the world, specifically of the Asian region, experienced the following falls with the new lockdown:
|Drop in the Composite %|
As provided by the Data from ‘Wall Street’
**This economy is said to have been drowned into Recession for the first time in ten years. The Singaporean economy showed a drastic decrease of 41.20 per cent in the quarter April to June 2020 and 12.60 per cent in this year. It is considered to be the first market to be struck with massive financial blows, before the other Asian markets are hit.
Rising tensions between U.S. and China
On Monday, the United States rejected China’s claims to most of the South China Sea. China then denounced the U.S. position saying it raised tension in the area. Meanwhile, others viewed the move as an election-year political consideration. The U.S. had previously accused the Chinese of controlling the South China Sea.
A significant part of China’s import and around 40 per cent of the country’s total trade passes through the South China Sea. Countries in the area see these waters as highly valuable for international shipping and fishing. About 3 trillion dollars worth of trade passes through the waterway each year.
This waterway has been the subject matter of disputes among China, Vietnam, Philippines, Taiwan, Brunei and Malaysia, wherein China claims around 90 per cent of the sea. The disagreement was left as it is for several years till it reached its boiling point between China’s and U.S.’s relations in the Asian region.
On July 13, 2020, the United States Secretary of State, Mr Mike Pompeo, had stated China’s chase after resources in the South China Sea as ‘unlawful.’ This gathered support for the SouthEast Asian countries, whereas Beijing was furious over the matter. He had further stated, “The world will not allow Beijing to treat the South China Sea as its maritime empire.” However, the Chinese are convinced that the above blame is completely ‘unjustified’.
The PRC has no legal grounds to impose its will on the region and claim resources off the coasts of Southeast Asian states.
— Secretary Pompeo (@SecPompeo) July 13, 2020
Mr Pompeo’s comments appeared as fuel to the existing blazing fire between China and several countries. A day after Pompeo’s remarks, China accused the U.S. of trying to worsen long-standing territorial disputes between China and its Southeast Asian neighbours.
“The U.S. has repeatedly sent… military planes and ships to the South China Sea,” said a Chinese foreign ministry spokesman on Tuesday. He called the U.S. “the troublemaker and destroyer” of peace and stability.
As of now, there is no clarity as to what the U.S. is going to do to hold up their stand against China.
With rising tensions with two major trade leader and uncertainty around the globe, there is no doubt that the world will never be the same again. Now the question is ‘Can the pandemic struck economies around the globe cope up with another trade blow?’