The IMF noted the risk of a new cold war between the United States and China

According to IMF representative Gita Gopinath, the United States and China risk starting a «new cold war» if they continue to distance themselves from each other. This is partly due to changes in investment trends and growing trade tensions between these two major economic powers.

Gopinath stressed that China is no longer the largest trading partner of the United States and has lost its position as the main destination for foreign investors. Analysts note that the cooling of relations between the two countries may negate all the progress achieved earlier. 

The situation is also complicated by the fact that not only the United States is cutting trade ties with China, but also other countries – Mexico, India and the United Arab Emirates. Moreover, the once direct links between China and the United States are already being replaced by indirect ones.

This can be seen in the example of the transfer of electronics production by large American companies to Vietnam, given the high tariffs in the United States on Chinese goods. At the same time, Vietnam, receiving most of its resources from China, further exports to the United States. And Mexico surpassed China as the largest exporter of goods to the United States in 2023.

However, it should be noted that the United States and China today have greater economic interdependence than in the past, and this can serve as a positive factor. Despite the tensions in relations, the economic ties between the two countries remain strong.