News and Market Analysis

US, China Tension Explodes

China on a war path. In Australia, data collection being used as “psychological warfare” by Zhenhua a Chinese company with links to Chinese military and Intelligence networks has collected data including names, date of birth, addresses, marital status , any political associations, relatives, social media IDs and even photographs. The breach has gone global with the company now affecting 2.4 million people world wide.

The question is what are they hoping to achieve from this information and how will it affect us?  We have all known for a long time now that the Chinese government collects compromising data on its own citizens, but this is a clear attempt to do it on a global scale. With this information they will be able to target the main influencers in the database and control how and what kind of media is being projected onto social media.

But is this just the beginning? Peter Jennings, executive director of  the Australian Strategic Studies Institute said “the global economy may be in hibernation but geopolitics is thriving and sprinting towards a potential crisis”. He believes the next 10 months will be the most dangerous since World War II.

The fact that Chinese Communist Party have emerged strategically stronger with its military in the Asia-Pacific region over the US and it’s allies during the COVID pandemic, has caused China’s leader Xi Jinping is not rolling the same dice as the rest of the world. In fact the game he has been playing is more of a tug-of-war. Any nation which goes against or gets in the way of the communist nations plans will be hit with a powerful jolt and slammed with  trade tariffs.

But it’s Xi’s stance on Taiwan that will be what could determine what the world would face within the next 10 months. As Xi continues to push the boundaries around Taiwan and flex it’s muscles, it will be up to the US to flex back and show what it’s prepared to do. Although this will be considered as a very desperate attempt on Xi’s part it would not come as a surprise as he has a history of being irrational.

It is a busy week of announcements with inflation numbers coming from Britain tonight, RBA minutes, CNY retail rate, Brexit Parlimanty Vote tomorrow, US retail sales and FOMC and I am only at Wednesday. Enough news to keep us busy so watch this space. Updates to come.

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