http://www.settimananews.it/informazione-internazionale/usa-china-the-path-of-no-ret
The two countries have differences over ideology, culture, civilization, trade, currency management, Hong Kong, Xinjiang, and human rights. There is rivalry for global primacy. There are ongoing fights in cyberspace and space; there is major competition over technology and the Belt and Road Initiative.
There are conflicting claims and deep tussles in many geopolitical areas: Taiwan, the South China Sea, the Senkaku, the Indian border, North Korea, and the dealing and future of Myanmar, Iran, and Russia. There are growing fissures over the future role of the digital yuan against that of the dollar.
There are just too many tensions, and it seems likely that these tensions cannot be solved and will be blown out of proportion. Moreover, the global tectonic shifts which are being brought about by Covid and its consequences are further fueling those tensions.
The vaccines are creating an area for diplomatic and political tensions, and the stimulus packages further enhance divergences.
Financial boost
Europe, the United States, and Japan need and want a stimulus package to boost the economy out of the present slump. It will possibly be the largest financial aid package in global history. Thousands of trillions will be poured into the economy to reshape the wealth system and world trade. The measures will bring inflation, and there are already signs in the United States that higher prices are kicking in.
China conversely doesn’t need a stimulus package. It posted 18.3% growth in the first quarter of the year, and a large plan for infrastructure is already taking place. Moreover, global demand for Chinese industrial products has been driving growth in China in recent months.
Further, an injection of money could force China to import inflation with price hikes in commodities, oil, and ore, and thus impose share price increases on the Chinese middle class with unfathomable consequences. Any of these challenges could be handled by themselves, but in combination, they make a huge question mark.
No status quo ante