A Chinese spy balloon flies above in Charlotte NC, United States on February 04, 2023. Experts say their appearance has raised serious questions about Beijing’s deep surveillance efforts.
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Top foreign policy experts expressed grave concerns about the state of U.S.-China relations at a Council on Foreign Relations meeting this week.
“The relationship is one that has now gotten to, I would say, a crisis point that did not have to happen if both nations were more secure about themselves and not willing to blame the other for their self-inflicted problems,” said Stephen Roach, senior fellow at Yale University’s Paul Tsai China Center.
The emergence of alleged Chinese spy balloons over the U.S. has raised serious questions about Beijing’s deep surveillance efforts, leading U.S. Secretary of State Anthony Blinken to postpone his trip to China in a widely-seen setback for the countries’ relations.
“We know that he [Blinken] had quite a robust agenda that he wanted to discuss with his Chinese counterparts, and the more — the very important part of his trip to China wasn’t just his meeting with his counterparts but also the potential for him to meet directly with [Chinese President] Xi Jinping and to relay the U.S. concerns directly,” said Bonny Lin, director of the China Power Project and senior fellow at the Center for Strategic and International Studies on Monday.
However, strategists and fund managers on Wall Street seem less concerned by the geopolitical ripple effects and more fixated on Beijing’s expected economic revival in 2023.
“In China, the focus is still on a potential economic recovery over the course of this year and next — the correlation of Chinese stocks with EM [emerging markets] and global peers is at multi-year lows,” Caesar Maasry, head of EM cross-asset strategy at Goldman Sachs, told CNBC.
The iShares China Large-Cap ETF is up 6% this year. In 2022, the ETF fell over 20%.
Maasry points out that China still…
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