President Donald Trump suggested on Thursday that the U.S. could "cut off the whole relationship" with China. He even estimated that doing so would save the country $500 billion.
China has been accused of covering up the extent of the outbreak and failing to be transparent about the seriousness of the virus. It was unclear whom Trump was referring to when he said “dealing with China is a very expensive thing to do.” On Monday already Trump and Labor Secretary Eugene Scalia directed the Federal Retirement Thrift Investment Board to halt plans to invest in Chinese companies. Administration officials warned that Chinese companies could face sanctions related to what the White House claimed were “culpable actions of the Chinese government with respect to the global spread of the [coronavirus].” Experts say however there is no provision in international law which allows culpability to be assigned to a particular country for a pandemic.
Until now and after the trade deal signed in January, China and the United States are continuing to make progress on opening market access for American exports, and easing tariffs on both sides. But China and the US are entering without doubts a new Cold War and this can influence the global economy.