CNBC’s Jim Cramer fears President Donald Trump’s administration will continue to put pressure on China in the election, creating a headwind for the market.
“I think the president is keeping the heat. I expect more negativity about China,” Cramer said on “Squawk on the Street”.
Cramer’s remarks on Thursday came as relations between the US and China continued to become increasingly cold, after a period of cooling in January after the two sides agreed to a trade deal. phase one. However, China is believed to be far from meeting its commitments to purchase goods under the deal, which was achieved after a battle of tariffs between the world̵7;s two largest economies that began in 2018.
At a White House briefing on Monday, Trump said the trade deal now means “very little in total imports of goods”, then criticized China’s handling of the coronavirus and dumping it. fault this country for the pandemic.
“We view China as different from eight months ago. Very different,” said Trump, who initially praised China’s response to China’s coronavirus but now argues that its government is not transparent about information-sharing. news about the initial outbreak.
While the virus emerged from Wuhan, China, public health experts argued that the US government’s failure to act quickly to stop the virus, as well as a lack of coordination between federal agencies and home. In part, this is why the United States has more reported cases of Covid-19 than any other country.
White House spokesman Judd Deere said in a statement to CNBC that Trump “is constantly reviewing our relations with China.” But the president “has nothing to announce at the moment,” added Deere.
The Trump administration has also increased scrutiny of Chinese technology companies – namely ByteDance, which owns social media video app TikTok and Tencent, which owns the WeChat messaging app.
Last week, Trump signed a pair of bans on US companies from trading with Tencent’s ByteDance and WeChat. The order Effective September, though there is still some confusion as to how they will be implemented.
According to a report from The Wall Street Journal, business leaders from major US companies include Ford Motor Co. and Disney expressed their concerns about the WeChat ban on the White House earlier this week.
Tensions between the US and China have also increased due to Beijing’s extensive national security laws that it imposes on Hong Kong this summer. The Trump administration recently sanctioned 11 people, including Hong Kong CEO Carrie Lam.
The Treasury said it was targeting Lam for “implementing policies to suppress Beijing’s liberal and democratic processes” in the former British colony.
China has responded with a series of sanctions against US officials, including Republican Prime Minister Ted Cruz in Texas and Marco Rubio in Florida.
– CNBC’s Berkeley Lovelace Jr. contributed to this report.