The phone Call that brought about some optimism in the markets!

[hemanthaa@mail.com + 64]

The rare phone call made between President Biden and President Xi of China appeared to have lifted the moods up in the markets on Friday. It certainly helped the crude oil markets which have been at the mercy of a catalogue of uncertainties in the past few weeks.

The high level contact between the leaders of the two economic superpowers may bring about a thaw in their relations, as both know that the status quo is not conducive for the collective global growth.

As for China, the economic situation is far from cosy in the aftermath of the pandemic. Although it is good at controlling the outbreaks, thanks to the sheer dominance that the state has over the masses, there are lots of things that at play, being beyond the Chinese.

The continuous rise in oil price is one of them. In addition, its technology sectors are bearing the brunt of animosity between the US and China. The massive export revenue suffered by its iconic mobile phone, Huawei, is a case in point.

China may have realized the mutually-assured destruction if the current diplomatic tussle continues and tries to break the ice in improving the relations.

The success of the move remains to be seen in the coming months.

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[Wombat1 + 33]

Very interesting Hemanthaa, but very stupid thing for America to make peace with China. Would be death of America. They would soon find that all the investment in the USA dries up again. The rest of the world will look at USA (and Europe), and say "why bother"? Australia, Japan, and South Korea are already building ties with India as we are tired of being dictated by both China and USA. We can no longer try to please both. So we are taking the third road now. The 21st century will be the Indian century.