In response to the US flexing its arms muscles, The Global Times Editor in Chief, Hu Xijin, has responded over Twitter with the following message for the world:
The US is very powerful, & unfriendly to China. That’s why I call on China to expand the number of nuclear warheads & enhance nuclear deterrence. China is a defensive country, but we need to possess enough capability so that the US dare not proactively attack China under any circumstances.
Last week, unveiling the flag for his new space force in the Oval Office on Friday, US President Donald Trump said the US was developing a “super-duper missile” to outpace military rivals including Russia and China.
We have no choice, we have to do it with the adversaries we have out there. We have, I call it the super-duper missile and I heard the other night [it’s] 17 times faster than what they have right now,
the president said, sitting at the Resolute Desk.
“That’s right,” said the Defence Secretary, Mark Esper, standing to Trump’s right.
Quote
Words start wars and end them, create love and choke it, bring us to laughter and joy and tears. Words cause men and women to willingly risk their lives, their fortunes and their sacred honor. Our world, as we know it, revolves on the power of words,”
― Roy Williams
Market implications
The prospect of a war between the US and China has been whipped up in recent times, although is not considered as an immediate threat in the markets. However, the tinders are being layered down to get the fire started, and it is prudent for investors to remain alert. For now, traders are more concerned for the day to day strategic means for reopening economies pertaining to the COVID-19 lockdowns. On Friday, “the market’s sentiment continued to fluctuate between fears of economic downturns and hopes on reopenings. Treasury yields remained depressed throughout the week,” – FXStreet
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