The fallout from the U.S.-China balloon dispute is driving worsening ties between the two countries [China Sends Spy Balloons Over Military Sites Worldwide, U.S. ...- nytimes.com]. However, new figures show that bilateral trade hit a record high in 2022, overcoming restrictions imposed during both the Trump and Biden administrations. [US-China trade hits record high despite rising tensions - BBC]
American lawmakers voted 419-0 to condemn Beijing for flying the balloon over U.S. airspace, and the State Department said the inflatable was equipped for spying, part of a far-reaching surveillance fleet that crossed more than 40 countries. China, for its part, has suggested it could take similar action against U.S. aircraft. “The odds of a free fall … in the relationship in the near-term are now much higher,” veteran China watcher Bill Bishop wrote in his Sinocism newsletter, but economic ties between the U.S. and China are growing, despite deepening political tensions.
New figures show that bilateral trade hit a record high in 2022, overcoming restrictions imposed during both the Trump and Biden administrations. Though hawks in Washington often trumpet the importance of insulating the U.S. economy from China’s, the figures are “an important indication of the difficulties of actually decoupling,” an analyst told the BBC.
A Shanghai company that makes laser sensors for cars and autonomous driving companies also debuted on the Nasdaq, becoming the first Chinese company to raise more than $100 million on a U.S. exchange since 2021, according to the Financial Times.
