Swell by Ripple 2019: Discuss the impact of escalating tensions between the U.S. and China
Singapore Ambassador to the United States, Chan Heng Chee, is actively involved in mitigating the impact of escalating tensions between the U.S. and China. At the Swell conference, Chee suggested taking on the state of that relationship as well as navigating how it might develop in the future and the meaning of innovations like Blockchain.
Chan Heng Chee, Singapore’s Ambassador to the United States for 16 years and now its Ambassador-at-Large.
Technology Containment policy is about to be announced
At first, Chee said it was hard for one big superpower to understand another. And this is true for the U.S. and China with the fundamental cultural differences can lead to misunderstandings about each country’s ambitions and intentions. This promotes an iterative cycle of repetition with a tremendous impact on the world around them.
Recently, those cycles have continued to accelerate. And formed a policy called Technology Containment. The most obvious implementation of this policy is Huawei’s blacklist by the United States, and its pressure on partner countries must do the same. That approach threatens to arrest many other Chinese and Asian companies, potentially excluding them from U.S. partners and capital markets.
And it is also a factor in China’s experiment with Blockchain as a way to replace the U.S. dollar as a reserve currency. This will not be a truly decentralized currency because China wants to maintain a certain level of control. But it will be possible to allow direct payments between countries for commercial or trading purposes without having to rely on the U.S. dollar.
And at this point, the U.S. Treasury is clarifying the situation and easing some pressure to avoid undermining the U.S. industry and the stock market entirely. There has also been a significant pushback of the semiconductor industry, universities, and other industries.
The impacts of escalating tensions between the U.S. and China: Continue the Cold War
If the protections fail or relations start to deteriorate again, it could lead to the worst-case scenario where the U.S. and China enter a new Cold War. But this is just an extreme scenario and very unlikely. Or at least not as Cold War as we have seen in the past with other communist countries.
Instead, Chee hopes that the relationship between the U.S. and China will develop into an ideal scenario that is to allow the two giant systems to live together despite their inherent differences. In this scenario, they can actively compete with each other, but do not attempt to defeat or eliminate the other ultimately.
The ambassador said that most ASEAN countries want this idiom because although some people like Vietnam and Cambodia are now benefiting from the trade war because of supply chain division, the effects are prolonged. The deterioration of the deteriorating US-China relationship will cause pall across the region.
Regardless of whether individual countries agree with short-term decisions, Chee believes they are all suitable for creating long-term prosperity for the entire region and will actively capture a scenario Competitive Coexistence.
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